BEIJING, Dec. 2, 2020 /PRNewswire/ -- China Petroleum & Chemical Corporation (HKG: 0386, "Sinopec") has announced that Dongxiang Autonomous County in Gansu Province has been lifted out of poverty, the last of the eight counties in Sinopec's fixed-point poverty alleviation and pairing program to eradicate poverty.

The previous seven counties in Sinopec's poverty relief program that have overcome poverty are Fenghuang and Luxi counties in Hunan Province, Yingshang and Yuexi counties in Anhui Province, Yopurga County in Xinjiang Uyghur Autonomous Region, Baingoin County in Tibet Autonomous Region and Zeku County in Qinghai Province.

Sinopec has developed precise poverty alleviation plans based on regional characteristics and advantages.

In poverty relief through industrial development, Sinopec has adapted to local conditions and natural endowments to develop specialty industries, such as promoting the quinoa produced in Dongxiang County, the "Sunshine Bazaar" series of dried fruit products in Xinjiang and an "Easy Joy-Zhuoma Spring" project that brings natural drinking water from Tibet to consumers across the country.

In poverty relief through consumption, Sinopec has helped products from the poverty alleviation program to enter the national market through 27,000 gas station convenience stores and seven online poverty relief shopping platforms, with the entire Sinopec system participating proactively in the initiative. In the past two years, Sinopec has helped to sell more than CNY600 million (US$91.40 million) worth of poverty relief products.

In terms of poverty relief through employment, Sinopec has hosted special job fairs in poverty-stricken regions with the goal of "one person's employment lifts a family from poverty". A Sinopec Poverty Alleviation Training Platform was established to offer regular vocational skills and agricultural training.

In promoting poverty relief through education, Sinopec has built 68 schools in designated poverty alleviation regions, purchased more than 30,000 pieces of teaching equipment and issued more than 20 million yuan ($US 3.1 million) in grants. To further support education development in poor areas, Sinopec also opened Spring Buds and Resilient classes for students in need.

In medical poverty alleviation, Sinopec has carried out the Sinopec Lifeline Express Health public welfare project for 16 years, bringing light to more than 46,000 cataract patients in impoverished regions. The company also introduced medical resources from Peking Union Medical College Hospital (PUMC) to poor areas and equipped them with urgently needed medical equipment, while continuing to improve the local medical conditions and make precise poverty alleviation plans.

In the meantime, Sinopec also focuses on improving people's quality of life by implementing a series of livelihood projects including transportation, water supply, lighting, pipelines, water conservation and dilapidated building renovation that effectively addressed and improved the working and living problems of drinking water, electricity, transportation and housing in densely populated areas. These projects promoted the economic development of poverty-stricken areas and built the foundation to eradicate poverty.

"Sinopec will earnestly fulfill its corporate social responsibilities and complete solid work in all aspects to play a pillar role in poverty alleviation, we will continue to aid impoverished counties in the fixed-point poverty alleviation and pairing program, with support not being withdrawn, and Sinopec will consolidate the hard-earned results and push forward rural revitalization, joining hands with the people in poor regions to strive for a well-off future," said Zhang Yuzhuo, chairman of Sinopec.

Sinopec has been actively involved in poverty alleviation since 1988, it has invested more than 2.4 billion yuan (US$ 365.6 million) in support and assistance. As of now, 67 Sinopec affiliated enterprises are carrying out supporting projects in 709 villages, with a total of 1,945 staff members fighting on the frontline of poverty alleviation.

Sinopec has achieved remarkable results in the continuous practice and exploration of precise poverty relief efforts, which led to the establishment of a Sinopec poverty alleviation model that drives industry with consumption, stimulates employment with industry and motivates productive powers in poverty-stricken areas.

For more information, please visit: www.sinopecgroup.com/group

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SOURCE Sinopec

BEIJING, Nov. 24, 2020 /PRNewswire/ -- China Petroleum & Chemical Corporation (HKG: 0386, "Sinopec") has established strategic cooperation with three top institutions on November 23 in Beijing, China, to take lead in a joint research on the energy and chemical industry's carbon emissions peak and carbon neutral.

Sinopec invited thought leaders and experts in the fields of climate change, energy and chemical industry to conduct in-depth research on the strategic path of having CO2 emissions peak and achieve carbon neutral before 2030 following China's action plan.

Zhang Yuzhuo, a research fellow and academician of the Chinese Academy of Engineering and chairman of the board of Sinopec, noted that achieving the goal of reaching the CO2 emissions peak and going carbon neutral is both a great responsibility and profound revolution for the energy and chemical industry.

"Sinopec will focus on green and low-carbon development from a strategic and overall perspective and move towards the goal of achieving 'net-zero' unswervingly, the company will follow the trends of global energy reform and general industrial development to study and determine its own strategic goals, key tasks, implementation approaches and guarantee mechanism," said Zhang. "Sinopec will also strengthen the communication and exchanges with government departments and industry associations to better serve and support national and industry-related decisions."

In recent years, Sinopec has promoted its green and low-carbon development tactic for the corporate development strategy, actively control its greenhouse gas emissions to achieve significant carbon emissions results. In the area of clean energy development, Sinopec has expanded its construction of natural gas production capacity and promoted the development of new energy resources such as biomass energy and geothermal energy, while driving forward the development and utilization of hydrogen energy.

To strengthen the company's energy-saving management, Sinopec implements an "energy efficiency improvement" plan that accelerates industrial structure adjustment to phase out the outdated production capacity.

And in terms of greenhouse gas recovery and utilization, Sinopec is focusing on promoting the recovery and utilization of high-concentration CO2 tail gas from refining and chemical enterprises, carrying out CO2 flooding field tests and methane gas release recovery. The carbon trading transaction volume of enterprises participating in the pilot project has reached 11.1 million tons.

Carbon emissions peak refers to the inflection point of total CO2 emission, after which the emissions will begin to decline. The carbon neutral target aims to achieve low-carbon and zero-carbon transformation of energy, realizes zero CO2 emissions, reduce other types of greenhouse gas emissions significantly as well as total man-made greenhouse gas emissions to zero through increasing carbon sinks and artificial negative emission measures.

About Sinopec

Sinopec Corp. is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration and production, pipeline transportation and sale of petroleum and natural gas; the sale, storage and transportation of petroleum products, petrochemical products, coal chemical products, synthetic fiber, fertilizer and other chemical products; the import and export, including an import and export agency business, of petroleum, natural gas, petroleum products, petrochemical and chemical products, and other commodities and technologies; and research, development and application of technologies and information.

Sinopec sets 'fueling beautiful life' as its corporate mission, puts 'people, responsibility, integrity, precision, innovation and win-win' as its corporate core values, pursues strategies of value-orientation, innovation-driven development, integrated resource allocation, open cooperation, and green and low-carbon growth, and strives to achieve its corporate vision of building a world-leading energy and chemical company.

For more information, please visit: www.sinopecgroup.com/group

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SOURCE SINOPEC

AL-KHOBAR, Saudi Arabia, Sept. 11, 2020 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec", HKG: 0386), China's leading energy and chemical company, today held a Sinopec Open Day in Saudi Arabia. This "Better Energy, Better Life" event exploring Sinopec's comprehensive, multi-faceted approach to sustainability, is its first virtual, as well as first international Open Day.

To watch the video of Sinopec Virtual Open Day event, please visit: https://www.youtube.com/watch?v=VanwNQqHr8g&feature=youtu.be

A close and deepening cooperation

This online event highlighted Sinopec milestones since its entry into Saudi Arabia in 2000 and provided updates while inviting questions from the global audience.  

For over two decades, Sinopec has consistently provided high-quality engineering, technology, and refining services for the Saudi petroleum and petrochemical industry, as well as supplied petroleum and petrochemical equipment, products, and services.

Sinopec, along with local partners, launched a world-class joint venture and cooperation refinery plant. In 2000, Sinopec established its first drilling rig in the country; now, it oversees nearly 70 rigs. With its safe, efficient construction, Sinopec has established a positive reputation in Saudi Arabia.

To propel the development of drilling technology, Sinopec established Sinopec Tech Middle East in Saudi Arabia's Dhahran Techno Valley in 2017, the first Chinese R&D center in the country. This reflected Sinopec's commitment to becoming the world's leading clean energy chemical company through greater cooperation with local communities and the government.

Sinopec is currently carrying out a four-year 3D geophysical prospecting project in the country, with over 1,000 project personnel combating average highs of 50° Celsius of daily basis in a desert zone covering more than 200km². Since entering Saudi Arabia in 2004, the Sinopec Exploration team has completed nine geophysical prospecting projects marked by its leading technology and outstanding health safety & environment performance.

In 2008, the Sinopec Training Center opened in Saudi Arabia to train local petroleum engineering personnel. As Sinopec's first overseas training center, it has since hosted 1,310 training courses and trained over 30,000 employees, in addition to cooperating with Saudi Aramco Training and multinational training institutions. The training center is also an important venue for Sino-Arab cultural exchange with a Silk Road bookstore for students to learn about Chinese culture.

To help Saudi Arabia realize its 2030 vision of building up a vibrant society, a thriving economy, and an ambitious nation, Sinopec is also constructing over 30 city overpasses and passages in Saudi Arabia, creating a 600km domestic water transportation system from Yanbu to the holy city of Medina as well as a 300km irrigation system.

Concurrent with this virtual open day event, Sinopec released the book "My 100 Overseas Colleagues", which tells the stories of Sinopec employees around the world. Meanwhile, Sinopec has also launched Sinopec Russia account on Facebook, Twitter, and VK to highlight its local appearance.

A growing international presence

Sinopec has 327 offices, 350 ongoing projects, and 52,000 international employees across 60 countries and regions around the world. Its overseas assets total more than RMB 600 billion. In line with the Belt and Road Initiative, Sinopec forged energy partnerships on an international level to establish new platforms for global, win-win cooperation. It is dedicated to assisting Belt and Road Initiative countries such as Saudi Arabia, Russia, and Kuwait as they transform from resource-exporting countries to resource-processing countries, steering forward in their sustainable development.

In uncertain times, Sinopec has continued to work with local governments to battle the Covid-19 pandemic, promote the resumption of production and projects, and ensure the health of its employees around the world.

About Sinopec

Sinopec Corp. is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration and production, pipeline transportation and sale of petroleum and natural gas; the sale, storage and transportation of petroleum products, petrochemical products, coal chemical products, synthetic fibre, fertiliser and other chemical products; the import and export, including an import and export agency business, of petroleum, natural gas, petroleum products, petrochemical and chemical products, and other commodities and technologies; and research, development and application of technologies and information.

Sinopec sets 'fueling beautiful life' as its corporate mission, puts 'people, responsibility, integrity, precision, innovation and win-win' as its corporate core values, pursues strategies of value-orientation, innovation-driven development, integrated resource allocation, open cooperation, and green and low-carbon growth, and strives to achieve its corporate vision of building a world leading energy and chemical company.

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SOURCE Sinopec

ZHOUSHAN, China, June 12, 2020 /PRNewswire/ -- China Petroleum & Chemical Corporation (HKG: 0386, "Sinopec"), China's leading energy and chemical company, has successfully installed the world's first and largest slurry-bed residue hydrogenation reactor of 3,000 tonnage in 15 hours on June 10 in Zhoushan, China, setting China's new record of highest integral hoisting weight by a single equipment.

Designed by Sinopec Engineering, the largest single-unit hydrogenation reactor in the world weighs 3,025 tons, which is the equivalent of 17 blue whales, the biggest animal on earth, and has a height of 72 meters (236.2 feet) that corresponds to a 26-story building. The reactor's outside diameter is 6.156 meters (20.2 feet) and has a wall thickness of 320mm. It's the core equipment of Zhejiang Petroleum & Chemical's 40-million-ton/year refining-chemical integration project, phase II.

The record-breaking installation adopted the 5,200-ton slidable hydraulic gantry lifting system for the main hoisting task, and a 2,000-ton XGC28000 crawler crane coordinated the lift from the other end.

The 5,200-ton hydraulic gantry lifting system has the advantages of lifting heavy weights, shifting integrally, and requiring fewer steps of assembly & disassembly of the middle tower, this solution effectively minimized the impact on the construction site and shortened the overall construction period.

The 5,200-ton hydraulic gantry lifting system will be relocated integrally to prepare for the lifting and installation of the second hydrogenation reactor, it will complete six more similar hoisting tasks in the coming months.

About Sinopec

Sinopec Corp. is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration and production, pipeline transportation and sale of petroleum and natural gas; the sale, storage and transportation of petroleum products, petrochemical products, coal chemical products, synthetic fiber, fertilizer and other chemical products; the import and export, including an import and export agency business, of petroleum, natural gas, petroleum products, petrochemical and chemical products, and other commodities and technologies; and research, development and application of technologies and information.

Sinopec sets "Fueling Beautiful Life" as its corporate mission, puts "people, responsibility, integrity, precision, innovation and win-win" as its corporate core values, pursues strategies of value-orientation, innovation-driven development, integrated resource allocation, open cooperation, and green & low-carbon growth, and strives to achieve its corporate vision of building a world leading energy and chemical company.

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SOURCE Sinopec

BEIJING, May 11, 2020 /PRNewswire/ -- China Petroleum & Chemical Corporation (HKG: 0386, "Sinopec"), China's leading energy and chemical company, was named the number one brand in China's energy and chemical industry in terms of brand value at China Brand Day 2020, held on May 10.

In the valuation of Chinese brands released as part of the day's activities, Sinopec's brand value reached RMB 299.1 billion, an increase of RMB 17.3 billion year-on-year, making it the top brand in China's energy and chemical industry and the second most valuable brand in the country.

The value of Sinopec's sub-brands has also surged. Easy Joy's brand value reached RMB 16.1 billion, up by RMB 4.6 billion, while Great Wall Lubricant's brand value reached RMB 7.7 billion, up by RMB 600 million. Meanwhile, Epec.com is now valued at RMB 9.8 billion and Sinopec "Donghai" Asphalt at RMB 1.2 billion.

Under the guidance of the State Administration for Market Regulation, China Brand Day is jointly organized by the China Council for the Promotion of International Trade, China Council for Brand Development, China Appraisal Society, and other organizations dedicated to propelling China's transformation from manufacturing-led to innovation-driven, from unparalleled speed to unsurpassed quality, and from product fabrication to brand creation. The seventh China Brand Day, this year saw 830 brands apply for consideration, after which they were subject to a rigorous set of criteria. In the end, the brand value of 564 brands were announced on China Brand Day, totaling RMB 7.3563 trillion in value.

For the last 37 years, Sinopec has been committed to forging cleaner energy and chemical products through respondible, practical action. Now, it is focused on developing its brand and defining its contribution to society. In March of this year, Sinopec issued its "Guiding Opinions on Strengthening the Construction of the Sinopec Brand", which clarified, for the first time, its brand concept of focusing on the sustainable development of the energy and chemical industry through innovation and responsibility, to create better lives and become a world-leading, best-in-class brand.

To enhance employee brand awareness and further build up its brand, Sinopec also joined hands with the China Association for Quality to launch the "Brand Excellence and Effectiveness: 10 Outstanding Brand Marketing Cases" initiative to encourage communication and sharing between the company's different sub-brands and divisions, in the aim of cultivating a robust and dynamic company culture.

With its brand valuation as recognition of its achievements, Sinopec will continue to enhance its brand and focus on creating positive impact in society.

About Sinopec

Sinopec Corp. is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration and production, pipeline transportation and sale of petroleum and natural gas; the sale, storage and transportation of petroleum products, petrochemical products, coal chemical products, synthetic fibre, fertiliser and other chemical products; the import and export, including an import and export agency business, of petroleum, natural gas, petroleum products, petrochemical and chemical products, and other commodities and technologies; and research, development and application of technologies and information.

Sinopec sets 'fueling beautiful life' as its corporate mission, puts 'people, responsibility, integrity, precision, innovation and win-win' as its corporate core values, pursues strategies of value-orientation, innovation-driven development, integrated resource allocation, open cooperation, and green and low-carbon growth, and strives to achieve its corporate vision of building a world leading energy and chemical company.

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SOURCE Sinopec

BEIJING, April 30, 2020 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec Corp." or the "Company") (HKEX: 00386; SSE: 600028; NYSE: SNP) today announced its unaudited first quarterly results for the three months ended 31 March 2020.

Financial Highlights

• In accordance with the CASs, the Company's operating income for the first quarter was RMB 555.502 billion; the net profit attributable to equity shareholders of the Company was RMB -19.782 billion; the basic earnings per share were RMB -0.163.
• In accordance with the IFRS, the Company's operating profit for the first quarter was RMB -26.305 billion; the net profit attributable to shareholders of the Company was RMB -19.145 billion; the basic earnings per share were RMB -0.158.
• In accordance with the IFRS, the Company had cash and cash equivalents (including time deposits) of RMB 138.773 billion as at 31 March 2020.

Operating Review

In the first quarter of 2020, as the COVID-19 outbreak spread worldwide, the world economy faced mounting downside risk packing with notably increasing instability and uncertainty. China's GDP decreased by 6.8% year on year. Due to plunging market demand for petroleum and petrochemical products coupled with slump of crude oil price, oil and gas industry was severely impacted.

Facing the complicated and severe situation, the Company adhered to the principles of "concentrating material tasks, system optimisation, controlling risk and seizing opportunities out of crisis", coordinated epidemic prevention and control with work resumption, brought our advantages of integrated business into full play, optimised production plan, refined operation plan, adjusted products slate, optimised inventory, expanded market, and tapped potentials and reduced cost to minimize the negative impact and maintained safe and steady operations. In particular, to combat the COVID-19, we maintained a stable supply of oil and gas, made great efforts to increase production of medical-use materials, coordinated online and offline non-fuel business to facilitate our customers with wider variety of products and services, and advanced resumption of work and production with industry chain partners.

In accordance with China Accounting Standards for Business Enterprises, net profit attributable to equity shareholders of the Company was RMB -19.782 billion. In accordance with IFRS, net profit attributable to equity shareholders of the Company was RMB -19.145 billion.

Exploration and Production: Under low crude oil price environment, we pressed ahead with high-efficiency exploration and paid more efforts on profit-oriented development, reduced cost and expenditure on all fronts and accelerated the formation of an integrated value chain of natural gas business including production, supply, storage and marketing. In exploration, we focused on organisation and operation of major projects and new discovery breakthrough. In crude oil development, we pushed to build profitable production capacity, and deepened structure adjustment in mature oil fields. In natural gas development, we expanded the market and promoted a coordinated growth along the value chain. In the first quarter, oil and gas production of the Company was 112.28 million barrels of oil equivalent, among which the production of crude oil was broadly flat compared with the same period of last year. Exploration and Production Segment realised an operating profit of RMB 1.518 billion.

Refining: Facing severe situation of plunged market demand, high-level inventory and slump of crude oil price, we persistently coordinated the integration of production and marketing, optimised allocation of resources and product slate based on market demand and continuously implemented low sulfur fuel oil projects. We coordinated domestic and overseas markets and increased the export of refined oil products, maintaining a steady operation of refining facility. In the first quarter, refinery throughput was 53.74 million tonnes, decreased by 13% year on year. The refining segment's operating loss was RMB 25.794 billion.

Marketing and Distribution: To address the dramatic decline of market demand, we enhanced market analysis, pressed ahead measures for market expansion, promoted targeted marketing strategy and tapped the potentials of distribution network. We innovated the non-fuel business model by coordinating online and offline business with wider variety of products and services to facilitate our consumers. In the first quarter, total sales volume of refined oil products was 53.68 million tonnes and marketing and distribution segment's operating loss was RMB 1.536 billion.

Chemicals: Under the circumstances of dramatic demand decline and price tumble of chemical products, we actively optimised resources allocation, reduced feedstock cost, adjusted operation plan and enhanced the dynamic optimisation of facilities and product chain, and improved the utilisation and production scheduling based on market demand. Giving full play to our industry advantages, we extended business value chain by increasing production of medical-use materials to ensure market supply. We put more efforts on market expansion to create space for production optimisation and adjustment as well as facilities stable operation. In the first quarter, the ethylene production was 3.026 million tonnes, being flat compared with the same period of last year, synthetic resin production increased by 2.8% year on year. The total chemical sales volume was 17.95 million tonnes. The Chemical segment's operating loss was RMB 1.568 billion.

Capital expenditure: In the first quarter, total capital expenditures of the Company was RMB 13.2 billion. Capital expenditure for the exploration and production segment was RMB 6.1 billion, mainly for Shengli and Northwest crude oil development projects, Fuling and Weirong shale gas projects. Capital expenditure for the refining segment was RMB 2.4 billion, mainly for Zhongke Refining and Petrochemical project, Zhenhai, Tianjin, Maoming and Beihai refining upgrading projects, low sulfur fuel oil projects and high-end carbon materials projects. Capital expenditure for the marketing and distribution segment was RMB 2.6 billion, mainly for construction of service stations, refined oil products depots and non-fuel businesses. Capital expenditure for the chemicals segment was RMB 2.1 billion, mainly for Zhongke, Zhenhai, Gulei, Zhonghan, Hainan projects.

Business Prospects

China's epidemic prevention and control trend has been further consolidated, the country's economic and social activities have gradually returned to normal, the production and living order has been restored at a faster pace, and the pent-up demand for petroleum and petrochemical products is being released. Under this opportunity, we have initiated a campaign that will last for 100 days to address the tough challenges and to improve performance. With management and staffs joint efforts, we are to reinforce measures on market expansion, operations optimisation, cost reduction, tapping potentials, and maintaining safe and steady operations.

We will adjust dynamically the production and operation arrangement and the investment plan, focusing on achieving a high-quality and more profitable operation. While ensuring prevention and control of the pandemic and maintaining safe and stable operation, we will give priority to the following tasks:

More vigorous efforts on market expansion. We will keep pace with the market recovery and the industry utilisation rate to seize the market opportunities, provide targeted services to reinforce the market share. Through innovation of business model and analysis of consumption demand changes, we will exploit potential demand to expand market share. By giving full play to the advantages of the industry chain, we will strengthen cooperation with partner and realise coordinative development.

More vigorous efforts on optimisaiton and adjustment. We will bring our advantages of integrated business into full play, refine the allocation of resources, and coordinate all the activities including procurement, transportation, production, storage and marketing. In the E&P segment, we will strengthen the overall coordination of "investment, reserves, output, cost, and profit". In the mid- and down-stream, we will coordinate the operation, feedstock slate, product mix and regional resources, accelerate advantages cultivation and production capacity building, and reinforce the effort in the integration of the production with the marketing.

More vigorous efforts on tapping potentials and cost reduction. We will conduct fine management and strengthen cost control involving all employees, covering all resources and conducting in all processes. We will improve the capital efficiency, expand financing channels and reduce financing cost.

Appendix: Principal financial data and indicators

About Sinopec Corp.

Sinopec Corp. is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration and production, pipeline transportation and sale of petroleum and natural gas; the sale, storage and transportation of petroleum products, petrochemical products, coal chemical products, synthetic fibre, fertiliser and other chemical products; the import and export, including an import and export agency business, of petroleum, natural gas, petroleum products, petrochemical and chemical products, and other commodities and technologies; and research, development and application of technologies and information.

Sinopec sets 'fueling beautiful life' as its corporate mission, puts 'people, responsibility, integrity, precision, innovation and win-win' as its corporate core values, pursues strategies of value-orientation, innovation-driven development, integrated resource allocation, open cooperation, and green and low-carbon growth, and strives to achieve its corporate vision of building a world leading energy and chemical company.

Disclaimer

This press release includes "forward-looking statements". All statements, other than statements of historical facts that address activities, events or developments that Sinopec Corp. expects or anticipates will or may occur in the future (including but not limited to projections, targets, reserve volume, other estimates and business plans) are forward-looking statements. Sinopec Corp.'s actual results or developments may differ materially from those indicated by these forward-looking statements as a result of various factors and uncertainties, including but not limited to the price fluctuation, possible changes in actual demand, foreign exchange rate, results of oil exploration, estimates of oil and gas reserves, market shares, competition, environmental risks, possible changes to laws, finance and regulations, conditions of the global economy and financial markets, political risks, possible delay of projects, government approval of projects, cost estimates and other factors beyond Sinopec Corp.'s control. In addition, Sinopec Corp. makes the forward-looking statements referred to herein as of today and undertakes no obligation to update these statements.

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SOURCE China Petroleum & Chemical Corporation

BEIJING, April 22, 2020 /PRNewswire/ -- A close-up video of production lines in Sinopec ("Sinopec", HKG: 0386) Yanshan Factory was recorded and released on the social account of Stuart, a British vlogger who lived in China, to showcase how disposable facial masks and KN95 masks are made from polypropylene grain into masks with vacuum-sealed packages.

The video went viral with 1.5 million views in hours. To watch the video of how a mask being made, please visit https://youtu.be/OioiItQq0Kk.

"A production line built in 12 days and it's turning out this much produce. Amazing," Stuart commented. In the video, Stuart started his one-day tour from fabric manufacturing - adding the polypropylene grain to the machine to be melted and extruded into a meltblown non-woven fabric sheet. Automatic production line makes the manual work easy in high yield ratio. Stuart followed the instructions of Xingqi Wang, the Manufacturing Director of Plasthetics in Sinopec Yanshan Factory, to help rolling the fabric to a cardboard and pack into mask-made preparation set.

To date, four meltblown non-woven fabric production lines of Sinopec Yanshan Factory have achieved mass production. With a daily production capacity of 12 tons, Sinopec Yanshan Factory can provide key raw materials for 12 million medical masks on a daily basis. 245.39 tons of meltblown non-woven fabrics have been produced. 17.97 tons are special meltblown non-woven fabrics for KN95 masks, which further eases the market demand for medical masks' raw materials, and provides strong support for fighting the COVID-19 epidemic.

About Sinopec Corp.

Sinopec Corp. is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration, production, transportation and sale of petroleum and natural gas, petrochemical and coal chemical products, synthetic fiber, fertilizer and other chemical products, as well as other commodities and technologies. 

In addition, Sinopec is engaged in the research, development and application of energy technologies. With a corporate mission of "Fueling Beautiful Life," Sinopec pursues strategies of value-orientation, innovation-driven development, integrated resource allocation, open cooperation, and green & low-carbon growth to build a world-leading energy and chemical company.

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SOURCE Sinopec

BEIJING, April 10, 2020 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec Corp." or "the Company") (HKEX: 00386; SSE: 600028; NYSE: SNP) announced that it has filed its 2019 Annual Report on Form 20-F with the United States Securities and Exchange Commission ("SEC").

The 2019 Annual Report is posted on the Company website at www.sinopec.com and can also be accessed electronically at www.sec.gov. Upon request, the Company will also deliver free of charge within a reasonable time a hard copy of its 2019 Annual Report, including its complete audited financial statements.

To request a hard copy, please contact the Company's Investor Relations team by telephone at +86 10 5996 0028, by e-mail at ir@sinopec.com or by written request to Board Secretariat at No. 22 Chaoyangmen North Street, Chaoyang District, Beijing 100728.  Re: 2019 Annual Report.

- End -

About Sinopec Corp.

Sinopec Corp. is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration and production, pipeline transportation and sale of petroleum and natural gas; the sale, storage and transportation of petroleum products, petrochemical products, coal chemical products, synthetic fibre, fertiliser and other chemical products; the import and export, including an import and export agency business, of petroleum, natural gas, petroleum products, petrochemical and chemical products, and other commodities and technologies; and research, development and application of technologies and information.

Sinopec sets 'fueling beautiful life' as its corporate mission, puts 'people, responsibility, integrity, precision, innovation and win-win' as its corporate core values, pursues strategies of value-orientation, innovation-driven development, integrated resource allocation, open cooperation, and green and low-carbon growth, and strives to achieve its corporate vision of building a world leading energy and chemical company.

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SOURCE China Petroleum & Chemical Corporation

BEIJING, March 30, 2020 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec Corp." or the "Company") (HKEX: 386; SSE: 600028; NYSE: SNP) today announced its annual results for the twelve months ended 31 December 2019.

Financial Highlights

• In accordance with IFRS, the Company's turnover and other operating revenues reached RMB 2.97 trillion, up 2.6% year-on-year at a historic high; Operating profit increased 4.8% year-on-year; Profit attributable to equity shareholders of the Company was RMB 57.5 billion. Basic earnings per share were RMB 0.475.
• In accordance with ASBE, the Company's operating profit was RMB 90.0 billion. Profit attributable to shareholders of the Company was RMB 57.6 billion. Basic earnings per share were RMB 0.476.
• In accordance with IFRS, the Company's liability-to-asset ratio as at the end of 2019 was 50.04%, maintaining a sound financial position. Cash and cash equivalents amounted to RMB 60.3 billion as at 31 December 2019,
• In upstream, greater efforts were made in oil and gas exploration, achieving satisfactory results in increasing reserves, stabilizing oil production, increasing gas output, and reducing costs. The domestic oil and gas reserve replacement ratio reached 138.7%, and market share of natural gas further increased. Operating profit of the refining segment totaled RMB 30.6 billion; Operating profit of the chemicals segment was RMB 17.2 billion; Operating profit of the marketing and distribution segment was RMB 29.1 billion.
• Taking into account the Company's profitability, shareholder returns and the future development, the Board of Directors proposed a final dividend of RMB 0.19 per share. Combined with the interim dividend of RMB 0.12 per share, the total dividend for the year is RMB 0.31 per share. Dividend payout ratio reached 65.3%.

Business Highlights

In 2019, the global economy slowed down while China maintained an overall stable with its gross domestic product (GDP) up by 6.1%. International oil prices fluctuated in a wide range while domestic market saw rapid growth demand for natural gas and fierce competition in oil products due to abundant supply, and chemicals prices decreased. The Company actively addressed market changes by pursuing innovative, coordinated, green, open and shared development. Through implementing specialized development, market-oriented operation, internalisation and overall coordination, we pushed forward all aspects of our work, and achieved solid operating results.

• Exploration and Production segment: pressed ahead with high efficiency exploration and profit-oriented development, continuously reduced cost and expenditure on all fronts. Tangible results were achieved in maintaining oil production, increasing gas output and reducing cost. We reinforced venture exploration and preliminary exploration in new areas which led to new discoveries in Tarim, Sichuan and Erdos basins. In natural gas development, we constantly pushed forward capacity building in Fuling, Weirong, and West Sichuan gas fields, expanded the market and sales, and promoted coordinated development along the value chain.
• Refining segment: continuously optimised product mix and the production volume of high-value-added products have been further increased. We optimised the production plan for low sulfur fuel oil and reduced cost. We leveraged our advantage in production and sales, and moderately increased export of oil products. We made structural adjustments, comprehensively optimized production and ensured safety and reliability of the refining facilities. We improved the marketing and distribution systems and realised a growth momentum in high grade products.
• Marketing and Distribution segment: brought our advantages of integrated production and marketing network into full play, adhered to the guideline of "achieving gains in both sales volume and profits", coordinated allocation of resources, expanded sales and increased profit, and achieved sustained growth in both total sales volume and retail scale. We strengthened development and marketing of company-owned brands, and promoted the innovation of non-fuel business model and its market-oriented reform, to speed up the development of non-fuel business.
• Chemicals segment: adhered to the development philosophy of "basic plus high-end", sped up advanced capacity building. We optimized products slate, enhanced integration among production, marketing, R&D and application, vigorously promoted the development and application of new products, and raised the proportion of new and specialty products. We deepened targeted marketing and service, realizing full sales.

Mr. Zhang Yuzhuo, Chairman of Sinopec Corp. said, "In 2019, global economy slowdown while China's economy remained overall stable. With international oil prices fluctuating within a wide range and new production capacity for refinery and petrochemicals being excessively released, market competition increased dramatically. As a result, the internal and external risks and challenges faced by the Company have increased significantly. In such a complicated and difficult market, with focus on both short and long-term goals in mind, the Board of Directors adhered to the guideline of pursuing progress while maintaining stability. Furthermore, it concentrated on modernizing the company's corporate governance systems and capabilities, and deepening reforms to sustain continuous growth and development. Under the management's leadership, our employees demonstrated dedication and a conscientious and responsible work spirit, and implemented all practices with discipline and in a professional manner. Significantly, the Company achieved better than expected operating results and made new progress in all fronts as we continuously deepened reform, exercised effective risk management, stabilised growth, and adjusted the operating structure while guaranteeing safety. Looking into 2020, the global economy will face more instability and uncertainty brought by the outbreak. Although the Chinese economy may be temporarily impacted, China's solid economic fundamentals will remain unchanged. We believe that as the control and prevention of outbreak continues to improve domestically, the domestic demand for petroleum and petrochemical products that was suppressed and frozen will rebound quickly.the Company will continue to adhere to the overall strategy of "making progress while maintaining stability," and to that end will implement new development philosophies and energy security strategies, as well as further strengthen corporate governance. The Company will also continue to focus on supply-side structural reform and continue to leverage its advantages of integration, aiming to realize a development pattern with energy resources as the backbone, clean energy and synthetic materials as two development wings, and new energy, new economies, and new fields as important growth points. The Company will continue to deepen the reform of its systems and mechanisms, further improve its corporate governance system and enhance governance capabilities. With headquarters acting as the center of restructuring, the Company will further advance reforms of its management system and market-oriented operation mechanism. It will strengthen construction of its systems, improve management, and better mobilize initiatives in every aspect so as to constantly increase the ability to create synergies, raise efficiency and mitigate risks. I firmly believe that with the concerted efforts of our Board of Directors, management and entire staff, as well as support from our shareholders and the community, Sinopec Corp. will surely develop in distinct ways that are more efficient and of higher quality, which in turn will create greater value for shareholders and the community."

Business Review

Exploration and Production

In 2019, we implemented the action plan of redoubling efforts in oil and gas exploration and production, actively pressed ahead with high-efficiency exploration and profit-oriented development, accelerated the systematic integration of natural gas production, supply, storage and marketing, continuously reduced cost and expenditure on all fronts, and achieved tangible results in maintaining oil production, increasing gas output and cutting cost. We reinforced venture exploration and preliminary exploration in new areas which led to new discoveries in Tarim, Sichuan and Erdos basins. The Company's newly added proved reserves in China reached 587 million barrels of oil equivalent, with domestic reserve replacement ratio at 138.7%. In crude oil development, we proceeded with the capacity building in Shunbei oilfield, strengthened profitable production capacity of hard-to-recover reserves in mature fields, intensified EOR technology breakthrough and application, and ensured steady production. In natural gas development, we constantly pushed forward capacity building in Fuling, Weirong, and West Sichuan gas fields, expanded the market and sales, and promoted coordinated development along the value chain. The Company's production of oil and gas reached 458.92 million barrels of oil equivalent, with domestic crude production reaching 249.43 million barrels and natural gas production totaling 1,047.78 billion cubic feet, up by 7.2% year on year.

In 2019, the operating revenues of this segment was RMB 210.7 billion, representing an increase of 5.3% over 2018. This was mainly attributed to the rise of realised price and sales volume in natural gas as a result of the expansion of natural gas business. In 2019, the operating profit of the exploration and production segment was RMB 9.3 billion, representing an increase of RMB 19.4 billion compared with 2018. The segment reinforced efficient exploration and profit-oriented development, enhanced stable production of crude oil, accelerated construction of natural gas production-supply-storage-sale system and actively expanding market and promoting sales, strengthened cost control, and effectively improved profitability.

Exploration and Production: Summary of Operations

Refining

In 2019, with market-oriented approach, we optimised product mix to produce more gasoline and jet fuel, increased production of high value-added products, and lowered diesel-to-gasoline ratio to 1.05. We optimised the production plan for low sulfur fuel oil and reduced cost. We leveraged our advantage in production and sales, and moderately increased export of oil products to keep a relatively high utilization rate. We promoted quality upgrading projects and made structural adjustments, comprehensively optimized production and ensured safety and reliability of the refining facilities. We improved the marketing and distribution systems and realised a growth momentum in high grade lubricants and grease, LPG, asphalt and sulphur. In 2019, the Company processed 249 million tonnes of crude oil, and produced 160 million tonnes of refined oil products, up by 3.4%, with gasoline and kerosene up by 2.6% and 7.8% respectively year on year.

In 2019, the operating revenues of this segment was RMB 1,224.2 billion, representing a decrease of 3.1% over 2018. This was mainly attributed to the decrease in products prices compared with the same period of last year. In 2019, the unit refining cash operating cost (defined as operating expenses less the processing cost of crude oil and refining feedstock, depreciation and amortisation, taxes other than income tax and other operating expenses, then divided by the throughput of crude oil and refining feedstock) was RMB 178 per tonne, a decrease of 1.4% over 2018. In 2019, the operating profit of the segment totaled RMB 30.6 billion, representing a decline of RMB 24.2 billion compared with 2018.

Refining: Summary of Operations

Note: Includes 100% of the production of domestic joint ventures.

Marketing and Distribution

In 2019, confronted with fierce market competition, the Company brought our advantages of integrated production and marketing network into full play, adhered to the guideline of "achieving gains in both sales volume and profits", coordinated allocation of resources, expanded sales and increased profit, and achieved sustained growth in both total sales volume and retail scale. With focus on customer need, we adopted a flexible and targeted marketing strategy, and improved our services. We upgraded our distribution network to further strengthen our existing advantages. We accelerated the construction and operation of CNG stations and explored the development of hydrogen fueling stations. Total sales volume of refined oil products for the year was 255 million tonnes, up by 7.3% year on year, of which domestic sales volume accounted for 184 million tonnes, up by 2.3%. Meanwhile, we strengthened development and marketing of company-owned brands, and promoted the innovation of non-fuel business model and its market-oriented reform, to speed up the development of non-fuel business.

In 2019, the operating revenues of this segment was RMB 1,431 billion, representing a decrease of 1.1% over 2018. In 2019, the operating profit of this segment was RMB 29.1 billion, representing an increase of 24% compared with 2018.

Marketing and Distribution: Summary of Operations

Chemicals

In 2019, the Company followed the development philosophy of "basic plus high-end", sped up advanced capacity building, and optimised business portfolio layout. We persistently fine-tuned chemical feedstock mix to increase the yield and lower cost. We optimized products slate, enhanced integration among production, marketing, R&D and application, vigorously promoted the development and application of new products, and raised the proportion of new and specialty products. We further adjusted facility structures to enhance the dynamic optimisation of facilities and product chain, and improved the utilisation based on market demand. Ethylene production in 2019 reached 12.49 million tonnes, up by 8.5% year on year. The differential ratio of synthetic fiber reached 90%, and the ratio of new and specialty products in synthetic resin reached 65.3%. We also promoted targeted marketing and service to further expand our business, with total chemical sales volume increased by 3.3% to 89.50 million tonnes, realising full sales.

In 2019, the operating revenue of the chemicals segment was RMB 495.2 billion, representing a decrease of 9.4% as compared with that of 2018. This was mainly due to sharp decrease in prices of chemical products as a result of the concentrated release of new capacity, as well as the change of supply-demand structure. In 2019, confronted with the business cycle correction and decreased chemical margin, the Company strengthened the coordination among research, development, production and marketing, continuously reinforced the profit prediction based on the market, optimised the structures of feedstock, product and facilities,, intensified allocation of resources, pushed ahead with targeted marketing and precise service strategy, and achieved steadily growing sales volume of petrochemicals. The operating profit of this segment was RMB 17.2 billion.

Note: Includes 100% of the production of domestic joint ventures.

Research and Development

In 2019, with the emphasis on innovation-driven strategy, the Company accomplished notable results in deepening reform of R&D mechanism, promoting innovation platforms such as joint R&D centers and incubators, and making breakthrough in key and frontier technologies. In upstream, research in gas enrichment theory and exploration technologies of marine phase medium and large gas fields in Sichuan Basin made headway, leading to breakthrough in gas reserve. Our proprietary rotary steering drilling system was successfully applied in Shengli oilfield. In refining, we developed various formulations for low sulphur fuel oil and passed engine tests and endurance tests. Our high-grade gasoline and diesel engine oil met the latest international standards and realised industrial production and commercialization. In chemicals, the start-up of the second generation high-efficiency and environment-friendly aromatics facilities was successfully started up. The anthraquinone method of producing hydrogen peroxide in fluidised-bed reactor and PPTA technology realised industrialization. In addition, the framework type code of a novel structured zeolite SCM-15 synthesised by us has been approved by the Structure Commission of International Zeolite Association. In 2019, the Company had 6,160 patent applications at home and abroad, among which 4,076 were granted. We also won six second prizes of National Sci-Tech Progress and one second prize of NationalTechnology Invention, and one gold, three silver and three excellent prizes of National Patent Awards.

Health, Safety, Security and Environment

In 2019, the Company constantly promoted and fully implemented the HSSE management system. We enhanced overall health management, and established safeguarding mechanism for occupational, physical and psychological health. We surveyed and rectified safety hazards, took stringent measures to control risks and supervise safety and operations of contractors, and achieved sound results. We upgraded our capacity in all-dimension risk prevention and control as well as emergency response, further enhancing security management. In 2019, we actively practiced green and low-carbon growth strategy, further promoted the green enterprise campaign and ecological conservation, and accomplished all emission reduction targets. Compared with 2018, energy consumption per 10,000 yuan of output was down by 0.4%, industrial fresh water usage was down by 1.1%, COD of discharged water down by 2.1%, and SO2 emissions down by 3.9%. All solid waste was properly treated. For more detailed information, please refer to "Communication on Progress for Sustainable Development 2019 of Sinopec Corp."

Capital Expenditures

In 2019, focusing on quality and profitability of investment, the Company continuously optimised its capital projects, with total capital expenditures of RMB 147.1 billion. Capital expenditure for the exploration and production segment was RMB 61.7 billion, mainly for Shengli and Northwest crude oil development projects, Fuling and Weirong shale gas projects, phase I of Xinqi gas pipeline, phase I of Erdos-Anping-Cangzhou gas pipeline, Qingdao-Nanjing gas pipeline, Wen 23 and Jintan gas storage projects, as well as overseas projects. Capital expenditure for the refining segment was RMB 31.4 billion, mainly for Zhongke Refining and Petrochemical project, Zhenhai, Tianjin, Maoming and Luoyang refining upgrading projects. Capital expenditure for the marketing and distribution segment was RMB 29.6 billion, mainly for construction of service stations, oil products depots, pipelines and non-fuel business. Capital expenditure for the chemicals segment was RMB 22.4 billion, mainly for Zhongke, Zhenhai, Gulei and Hainan projects, ethylene revamping for Sinopec-SK and Sinopec-SABIC projects, phase II of Hainan high-efficiency and environment-friendly aromatics project, Sinopec-SABIC polycarbonate project and Zhongan coal chemical project. Capital expenditure for corporate and others was RMB 2 billion, mainly for R&D facilities and information technology projects.

Business Prospects

In 2020, despite the increasing instability and uncertainty of the international political and economic situation, and the inevitable impact on China's economy by coronavirus outbreak in the short term, we expect the fundamentals sustaining sound economic growth in China to remain unchanged. Domestic demand for energy and chemical products will be relatively weak in the first half, but the accumulated demand is expected to be released rapidly after outbreak. Considering oil-producing countries' abundant supply capacity, global demand growth, inventory levels, and geopolitics, we expect that the international oil prices will fluctuate at a low level.

In 2020, adhering to the principles of "reform, management, innovation, and development", the Company will focus on optimisation of the entire business value chain, as well as market expansion, risk prevention, and seizing opportunities so as to do our best to reduce the negative impact of the coronavirus outbreak and the slump of crude oil price, and strive to achieve healthy business performance. Due to the outbreak, the adjustment of the Company's production plan for 2020 is currently underway. We will confirm the production plan according to the market trends in the future.

Exploration and Production, under the low oil price circumstance, we will optimise projects implementation, enhance high-quality exploration, and reduce cost and expenditure to expand resource base and realize sustainable development. In crude oil development, more efforts will be made in promoting capacity building of Shunbei Oilfield, Tahe Oilfield, and the Oilfield at the western margin of the Junggar Basin, and we will strengthen profit-oriented development of mature fields. In natural gas development, we will accelerate capacity construction of key projects, and promote integration of production, supply, storage and marketing so as to maximize the value of the business chain. Preliminarily, we plan to keep a stable production volume of curde oil and realise a positive growth for nature gas.

Refining, under low oil price circumstance, with the coordination of production and sales, domestic and overseas markets, the Company will optimize utilization rate and production scheduling, and promote efficient operation of its refining business chain. We will optimize the allocation of crude oil, coordinate crude oil supply chain, and reduce procurement costs. More efforts will be made in restructuring product slate, increasing products tailoring for market demand and changes. We will accelerate low-sulfur bunker fuel projects and the revamping of storage and transportation facilities to rapidly expand market share.

Marketing and Distribution, balancing volume and profit, and leveraging the advantages of integration of production and sales, the Company will continuously improve the quality of its operations. We will vigorously carry out targeted and differentiated marketing to continuously improve our services with focus on customer need. We will accelerate the construction of smart service stations, coordinate the layout of natural gas and hydrogen stations, and consolidate and expand network advantages. More efforts will be made in boosting innovation in non-fuel business models, vigorously developing proprietary brands, creating differentiated competitive advantages, so as to drive rapid growth in non-fuel business.

Chemicals, the Company will focus on the "basic + high-end" development concept, speed up advanced capacitybuilding, continuously deepen structural adjustment, and improve our competitiveness and profitability. We will optimize facilities and product chain, and improve utilization rate and production scheduling based on market demand. Efforts will be made in adjusting feedstock slate to improve product yield and reduce cost. We will coordinate production, marketing, research and application, and redouble our efforts in developing new products and increase the production of high value-added products. Meanwhile, we will improve targeted marketing and services, enhance e-commerce platforms, actively explore overseas markets and continuously expand market share.

Research and Development, we will continue to implement the innovation-driven development strategy, deepen mechanism reform, accelerate key technology breakthrough, improve innovation capabilities to strive for quality development. In oil and gas exploration and development, we will strive to make technology breakthrough in ultra-deep oil and gas, tight oil and gas, shale oil and gas, etc. In refining, we will accelerate the research of heavy oil processing, oil quality upgrading, and promote the application of technologies such as needle coke. In chemicals, we will continuously improve the package technologies of ethylene and aromatics, strengthen the research and development of photoelectric materials and degradable materials, and accelerate the industrialization of large-tow high-performance carbon fibers. At the same time, we will focus on advancing research on cutting-edge technologies and new areas to achieve future business development through technology innovation.

Capital Expenditures, preliminary capital expenditures for the year 2020 are budgeted at RMB 143.4 billion. We will dynamically optimise capital projects based on future market trends. Preliminarily, RMB 61.1 billion will be invested in exploration and production with focuses on the production capacity building of Shengli and Northwest crude oil development projects, Fuling and Weirong shale gas field, and the construction of natural gas pipelines and storage facilities as well as overseas oil and gas projects. The refining segment will account for RMB 22.4 billion, mainly on the construction and commissioning of the Zhongke project, and structural adjustment projects of Zhenhai, Tianjin, Maoming, Luoyang. RMB 22.0 billion is budgeted for marketing and distribution with emphasis on service stations, depots and storage facilities for refined oil products, pipelines and non-fuel business. The share for chemicals will be RMB 32.3 billion which will be used on the construction of Zhongke, Zhenhai and Gulei projects, ethylene revamping of Sinopec-SK and Sinopec-SABIC projects, Sinopec-SABIC polycarbonate project, Jiujiang aromatics project and Zhong An coal chemical project. The capital expenditure for corporate and others will be RMB 5.6 billion, mainly for R&D facilities and information technology projects.

Appendix: Key financial data and indicators

FINANCIAL DATA AND INDICATORS PREPARED IN ACCORDANCE WITH ASBE

Principal accounting data

Principal financial indicators

FINANCIAL DATA AND INDICATORS PREPARED IN ACCORDANCE WITH IFRS

Principal accounting data

Principal financial indicators

The following table sets forth the operating revenues, operating expenses and operating profit / (loss) by each segment before elimination of the inter-segment transactions for the periods indicated, and the percentage changes between 2019 and 2018.

About Sinopec Corp.

Sinopec Corp. is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration and production, pipeline transportation and sale of petroleum and natural gas; the sale, storage and transportation of petroleum products, petrochemical products, coal chemical products, synthetic fibre, fertiliser and other chemical products; the import and export, including an import and export agency business, of petroleum, natural gas, petroleum products, petrochemical and chemical products, and other commodities and technologies; and research, development and application of technologies and information.

Sinopec sets 'fueling beautiful life' as its corporate mission, puts 'people, responsibility, integrity, precision, innovation and win-win' as its corporate core values, pursues strategies of value-orientation, innovation-driven development, integrated resource allocation, open cooperation, and green and low-carbon growth, and strives to achieve its corporate vision of building a world leading energy and chemical company.

Disclaimer

This press release includes "forward-looking statements". All statements, other than statements of historical facts that address activities, events or developments that Sinopec Corp. expects or anticipates will or may occur in the future (including but not limited to projections, targets, reserve volume, other estimates and business plans) are forward-looking statements. Sinopec Corp.'s actual results or developments may differ materially from those indicated by these forward-looking statements as a result of various factors and uncertainties, including but not limited to the price fluctuation, possible changes in actual demand, foreign exchange rate, results of oil exploration, estimates of oil and gas reserves, market shares, competition, environmental risks, possible changes to laws, finance and regulations, conditions of the global economy and financial markets, political risks, possible delay of projects, government approval of projects, cost estimates and other factors beyond Sinopec Corp.'s control. In addition, Sinopec Corp. makes the forward-looking statements referred to herein as of today and undertakes no obligation to update these statements.

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SOURCE China Petroleum & Chemical Corporation

BEIJING, March 25, 2020 /PRNewswire/ -- As the world battles the COVID-19 pandemic, Sinopec Corp (HKG: 0386), China's leading energy and chemical company, has shown support and solidarity to the international community by supplying 10,256 tonnes of much-needed bleaching powder to countries grappling with an outbreak. To date, Sinopec Jianghan Salt & Chemical Complex has shipped bleaching powder to more than ten affected countries, including Italy, France, Thailand, Australia, New Zealand and Vietnam.

With the global pandemic spreading, demand for disinfectants—an essential product for epidemic prevention and control—is skyrocketing. Based in Hubei, China, Sinopec Jianghan Salt & Chemical Complex has overcome vast hurdles to help protect the world during these unprecedented times. Despite having a limited workforce, logistical restrictions and pressing domestic needs, Sinopec Jianghan Salt & Chemical Complex is working tirelessly to rise above these challenges and meet global demand for disinfectant.

The largest manufacturer of bleaching powder in Asia, Sinopec Jianghan Salt & Chemical Complex holds over 30% of the global market share and has a strong reputation in the market. Every year, the company exports products to over 80 countries and regions, including Europe, America, Australia and Russia. With ten bleaching powder production plants, annual production capacity of Sinopec Jianghan Salt & Chemical Complex is designed to reach up to 54,000 tonnes. Sinopec Jianghan Salt & Chemical Complex's plants are currently operating at full capacity, and the company has adjusted operations and production loads to meet the sharp increase in demand. At present, bleaching powder products from Sinopec Jianghan Salt & Chemical Complex have a best-in-class production yield rate of 100% and a premium production quality rate of 90%.

About Sinopec Corp.

Sinopec Corp. is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration, production, transportation and sale of petroleum and natural gas, petrochemical and coal chemical products, synthetic fiber, fertilizer and other chemical products, as well as other commodities and technologies. In addition, Sinopec is engaged in the research, development and application of energy technologies. With a corporate mission of "fueling beautiful life," Sinopec pursues strategies of value-orientation, innovation-driven development, integrated resource allocation, open cooperation and green and low-carbon growth to build a world-leading energy and chemical company.

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SOURCE Sinopec

KUWAIT CITY, Kuwait, Dec. 16, 2019 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec" or the "Company") (HKEX: 386; SSE: 600028; NYSE: SNP) has completed the central unit of the Al-Zour refinery project in Kuwait. As the largest refinery in the Middle East, it will make Kuwait the biggest clean oil-producing country in the region with an annual processing capacity of 3,150 tons.

Launched in October 2015, the Al-Zour refinery project is the latest achievement of Sino-Kuwait cooperation, which also holds the record of being the world's largest one-time construction to date. Nearly 500 companies from 50 countries and regions participated in the project. The world-class refinery is being built with an investment of USD1.39 billion and produces mainly gasoline, diesel and kerosene to Euro 5 emission standards.

As one of the general contractors of Al-Zour refinery project, Sinopec Luoyang Engineering adopted an intelligent collaborative work system and utilised virtual designs to coordinate with global partners and share data to complete the 15 process production plants including the hydrodesulfurization plant. 

An emphasis on locally-sourced materials has created a boost to the manufacturing industries of Kuwait as well as the development of the local economy and providing a large number of employment opportunities.

Usama Ali, project manager of Al-Zour refinery, spoke highly of Sinopec as a "trustworthy, professional and hardworking partner" and hopes Sinopec will continue to participate in further projects in Kuwait.

The Al-Zour refinery will provide high-quality clean fuel with high added-value for the global market, it's also a new milestone for Kuwait as the country pushes forward national economic transitions.

With 60 years of history, Sinopec Luoyang Engineering has completed 4,300 mid-to large-scale construction projects and has acquired 1,061 patents at home and abroad.

Adhering to independent innovation, Sinopec owns a series of world-leading technologies and solutions in areas of oil refining, ethylene, aromatic hydrocarbon and more, as well as the capabilities to build 10-million-tonnage refineries, million-tonnage ethylene units and million-tonnage aromatic hydrocarbon units.

In 2016, Sinopec's first overseas refinery project, the Yanbu Aramco Sinopec Refining Company in Saudi Arabia, officially began operations. A year later, Sinopec completed the upgrading of Kazakhstan's Atyrau Refinery.

For more information, please visit: http://www.sinopecgroup.com/group/en/ 

About Sinopec Corp.

Sinopec Corp. is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration, production, transportation and sale of petroleum and natural gas, petrochemical and coal chemical products, synthetic fiber, fertilizer and other chemical products, as well as other commodities and technologies. In addition, Sinopec is engaged in the research, development and application of energy technologies.

With a corporate mission of "fueling beautiful life," Sinopec pursues strategies of value-orientation, innovation-driven development, integrated resource allocation, open cooperation and green and low-carbon growth to build a world-leading energy and chemical company.

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SOURCE Sinopec

SHANGHAI, Nov. 20, 2019 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec" or the "Company") (HKEX: 386; SSE: 600028;NYSE: SNP) and French company Air Liquide opened two hydrogen stations, West Shanghai Petrol and Hydrogen Fueling Station and Anzhi Gas and Hydrogen Fueling Station, on November 18 in Shanghai. They are the first stations in China to provide combined commercial gas and hydrogen fuel services.

The two hydrogen stations are part of the first project jointly signed by Sinopec and Air Liquide, which will lead Shanghai on the path to becoming a hydrogen energy harbor and further support the development of the 'Hydrogen Corridor'.

The two stations are secondary gas and hydrogen fueling stations; each is equipped with two gasoline tanks, two diesel tanks and four hydrogen tanks, as well as two 12-pump fuel dispensers, two four-pump 35MPa hydrogen dispensers and a reserved 70MPa hydrogen dispenser. The pipelines of the two stations were constructed per the upgraded 70MPa standard to meet the needs of both 35MPa and 70MPa car owners.

Equipped with the world's most advanced technologies, the two combined gas and hydrogen fueling stations have a daily capacity of 1,000 kilograms to serve public transportation, logistics and passenger vehicles. Each station can fuel 100 cars a day. A full tank can be provided in 4-6 minutes per vehicle, providing a driving distance of 300 to 400 kilometers (186.41-248.55 miles). 

Unlike previous petrol and hydrogen fueling stations that separate gas and hydrogen, the new project combines them. Sinopec achieved this by recycling the former gas station to create a secondary energy complex. The benefits of this innovative new concept of construction results it better land conservation, reduced waste and lower safety risks.

According to the midterm goal of "Shanghai Fuel Cell Vehicle Development Plan," the city will complete 50 hydrogen stations by 2025. To achieve this, Sinopec Shanghai Petrochemical will utilize the land from 580 existing gas stations to fast-track the introduction of a new generation national network of stations covering urban roads and highways, for a reduced carbon future.

About Sinopec Corp.

Sinopec Corp. is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration, production, transportation and sale of petroleum and natural gas, petrochemical and coal chemical products, synthetic fiber, fertilizer and other chemical products, as well as other commodities and technologies. In addition, Sinopec is engaged in the research, development and application of energy technologies.

With a corporate mission of 'fueling beautiful life', Sinopec pursues strategies of value-orientation, innovation-driven development, integrated resource allocation, open cooperation and green and low-carbon growth to build a world-leading energy and chemical company.

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SOURCE Sinopec

SHANGHAI, Oct. 31, 2019 /PRNewswire/ -- Sinopec "Donghai" asphalt obtained approval from the Shanghai Futures Exchange for registration on Oct. 31, marking the debut of China's biggest asphalt producer and Sinopec's first brand registered at the exchange.

Sinopec "Donghai" asphalt, with an annual production volume of 8 million tons, controls a domestic market share of 29% and exports to 17 countries across five continents. Thanks to its excellent performance in terms of stability and resistance to abrasion and ageing, "Donghai" asphalt is the material of choice for several of China's most significant projects, including Beijing's Chang'an Avenue, Beijing Daxing International Airport, Xiong'an New Area, the Winter Olympic Games and the Shanghai F1 International Circuit.

Asphalt is a commodity futures product linked closely to the international crude market. Since their debut in 2013, asphalt futures contracts have become actively-traded instruments in China's futures market. As an important risk-hedging tool, asphalt futures can help companies in the petrochemical industry or those engaged in road construction to mitigate risks by locking in cost or profit.

In step with the plan of further opening China's energy sector, Sinopec worked together with the Shanghai Futures Exchange to create the "Donghai" asphalt Futures Product.

In step with the central government's planned further opening of its energy sector, Sinopec worked together with the Shanghai Futures Exchange to create the "Donghai" asphalt Fututures Product.

Sinopec Refinery Sales Co, a Sinopec unit, in preparation for the registration of the brand, worked in coordination with five Sinopec asphalt producing subsidiaries to create a futures product of high-stability.

The move can bring future asphalt prices closer to spot prices, enabling clients to buy asphalt using either market, thus, speeding up circulation of the commodity, and improving risk-hedging and price-discovery functions of asphalt futures.

Through partnerships with overseas engineering projects and long-term contracts, Sinopec "Donghai" asphalt exports to 17 countries, including a dozen "Belt & Road" nations such as Vietnam, Malaysia, Indonesia, Pakistan and Zambia. In the first nine months of 2019, "Donghai" asphalt exported 500,000 tons of "Donghai" asphalt. 

The debut of Sinopec "Donghai" asphalt represents Sinopec's endeavour to actively participate in the three major petrochemical futures products - crude oil, fuel oil and asphalt and provides a foundation for new futures products in liquefied gas, gasoline and diesel.

About Sinopec Corp.

Sinopec Corp. (HKEX: 386; SSE: 600028;NYSE: SNP) is one of the largest R&D based, integrated energy and chemical companies in China. Its principal operations include the exploration, production, transportation and sale of petroleum and natural gas, petrochemical and coal chemical products, synthetic fiber, fertilizer and other chemical products, as well as other commodities and technologies.

With a corporate mission of 'fueling beautiful life', Sinopec pursues strategies of value-orientation, innovation-driven development, integrated resource allocation, open cooperation and green and low-carbon growth to build a world-leading energy and chemical company.

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SOURCE Sinopec

BEIJING, March 24, 2019 /PRNewswire/ -- China Petroleum & Chemical Corporation ( "Sinopec Corp." or the "Company") (HKEX: 386; SSE: 600028; NYSE: SNP) today announced its annual results for the twelve months ended 31 December 2018.

Financial Highlights

• In accordance with IFRS, the Company's turnover and other operating revenues reached RMB 2.89 trillion. Profit attributable to equity shareholders of the Company was RMB 61.6 billion, up 20.2% year-on-year. Basic earnings per share were RMB 0.509.
• In accordance with ASBE, the Company's operating profit was RMB 101.5 billion, up 16.7% year-on-year. Profit attributable to shareholders of the Company was RMB 63.1 billion, up 23.4% year-on-year. Basic earnings per share were RMB 0.521.
• In accordance with IFRS, the Company's liability-to-asset ratio as at the end of 2018 was 46.21%, which represented a slight decrease of 0.33 percentage points compared with the end of the previous year. The Company maintained a sound financial position. Cash and cash equivalents amounted to RMB 111.9 billion as at 31 December 2018, maintaining at a healthy level.
• In upstream, we made great efforts to enhance oil and gas exploration and production and achieved domestic crude oil reserves replacement ratio of 132%. Meanwhile, we pushed ahead with the construction of natural gas production, supply, storage and marketing system, rapidly increasing natural gas production and sales volume. Operating profit of the refining segment totaled RMB 54.8 billion; Operating profit of the chemicals segment was RMB 27.0 billion; Operating profit of the marketing and distribution segment was RMB 23.5 billion.
• Taking into account the Company's profitability, shareholder returns and the future development, the Board of Directors proposed a final dividend of RMB 0.26 per share. Combined with the interim dividend of RMB 0.16 per share, the total dividend for the year is RMB 0.42 per share. Dividend payout ratio and dividend yield reached 82.5% and 7.4%, respectively.

Business Highlights

In 2018, the global economic recovery was slow while China maintained an overall stable economic performance with its GDP up by 6.6%. International oil prices fluctuated in a wide range. Domestic demand for natural gas grew rapidly. Domestic oil products market saw fierce competition because of oversupply, and demand for chemicals increased steadily. Meanwhile, China's environmental regulations became more stringent. The Company actively coped with market changes by focusing on reform, management, innovation and development. We coordinated all aspects of our work by pressing ahead measures for optimised operation, market expansion, cost reduction, risk control, reform promotion, and management enforcement, which helped the company achieve solid operating results.

• Exploration and Production segment: pressed ahead with high efficiency exploration and profit-oriented development, continuously reduced cost and expenditure on all fronts. Tangible results were achieved in maintaining oil production, increasing gas output and reducing cost. We reinforced preliminary exploration in new areas and strengthened integrated detailed evaluation in mature fields, which led to new discoveries in Tarim, Yin'e and Sichuan basins. In natural gas development, we constantly pushed forward capacity building in Hangjinqi of Neimongol, the eastern slope of west Sichuan Depression and Weirong shale gas fields. We optimised production and distribution and promoted a coordinated growth along the value chain.
• Refining segment: continuously optimised product mix and the production volume of high-value-added products have been further increased. We proactively promoted structural adjustment and quality upgrading projects, the GB VI standard upgrading is completed successfully. Optimisation of production plans and resources allocation were carried out to reduce crude oil cost.
• Marketing and Distribution segment: aimed to achieve a balance between sales volume and profits; brought our advantages of integrated business and distribution network into full play and confronted with fierce market competition, thus, achieved sustained growth in both total domestic sales volume and retail scale. Non-fuel business maintained rapid growth.
• Chemicals segment: adhered to the development philosophy of "basic plus high-end" to enhance effective supply; intensified its efforts to enhance the efficiency of the integration among production, marketing, R&D, and application. The ratio of high-value-added synthetic products continued to increase. Total chemical sales volume achieved robust growth.

Mr. Dai Houliang, Chairman of Sinopec Corp. said, "In 2018, we adhered to the general principle of making progress while maintaining stability, following the new development philosophy and requirements for high-quality development, we fully exerted the advantages of the integrated value chain. We made great efforts in optimizing operation, expanding market, reducing costs, controlling risks, deepening reforms, reinforcing management, and launching the Talent Empowering Enterprise Scheme. We successfully dealt with various risks and challenges, made progress in many aspects and pushed forward the sustainable development in an all-round way. We constantly improved the Company's development quality by optimising production and operation, actively expanding markets, accelerating structural adjustment, and further promoting scientific and technological innovations, which strengthened our competitiveness. In 2019, the Company will adhere to the overall strategy of pursuing progress while maintaining stability, fulfill our due responsibilities and make more efforts in implementing our plans so as to lay solid foundation for sustainable development. Meticulous planning will be made to secure stable operation and to boost operational quality and profitability. Besides, we will strive to implement reform and to improve motivation and incentive mechanisms. Foundation will be consolidated, risk control will be strengthened, and operation and management standards will be further enhanced. In addition, we will strongly promote technological innovations to drive our future growth. We advance structural reform by building a solid resource foundation for sustainable development, strengthening the overall competitiveness of the value chain of refining and marketing businesses, and enhancing our capability in high-end production and value creation of chemical business. With an aim to build the Company into a green enterprise with high quality, we will make vigorous efforts in pollution prevention and environmental protection to raise the level of our green development. Moreover, we will explore and capture strategic emerging business opportunities through financial investments, thereby cultivating new growth drivers."

Business Review

Exploration and Production

In 2018, we pressed ahead with high efficiency exploration and profit-oriented development. Measures were taken to accelerate the formation of an integrated value chain of natural gas business including production, supply, storage and marketing and continuously reduce cost and expenditure on all fronts. Tangible results were achieved in maintaining oil production, increasing gas output and reducing cost. We reinforced preliminary exploration in new areas and strengthened integrated detailed evaluation in mature fields, which led to new discoveries in Tarim, Yin'e and Sichuan basins. The Company's newly added proved reserves in China reached 458.2 million barrels (64.54 million tonnes) of oil equivalent, with crude oil reserve replacement ratio at 131.7%. In crude oil development, we made a full-fledged push to build profitable production capacity, deepen the structural adjustment of mature fields, reduce natural decline rate and ensure steady production. In natural gas development, we constantly pushed forward capacity building in Hangjinqi of Neimongol, the eastern slope of west Sichuan Depression and Weirong shale gas fields. We optimised production and distribution and promoted a coordinated growth along the value chain. The Company's production of oil and gas reached 451.46 million barrels (63.50 million tonnes) of oil equivalent, with domestic crude production registering 248.93 million barrels (35.06 million tonnes) and natural gas production totaling 977.32 billion cubic feet (27.7 billion cubic meter), up by 7.1%.

In 2018, the operating revenues of this segment was RMB 200.2 billion, representing an increase of 27.1% over 2017. This was mainly attributed to the rise of realised price of crude oil and natural gas as well as the expansion of natural gas and LNG business. By capturing the recovery of crude oil price, the segment reinforced efficient exploration, enhanced profitable production of refined reservoir, promoted stable production of crude oil, and rapidly expanded production of natural gas. Operating loss of the exploration and production segment was RMB 10.1 billion, representing a significant reduced loss of RMB 35.8 billion as compared with 2017.

Exploration and Production: Summary of Operations

Refining

In 2018, with market-oriented approach, we optimised product mix to produce more gasoline, jet fuel and chemical feedstock, production of high value-added products further increased, and diesel-to-gasoline ratio declined to 1.06. We proactively promoted structural adjustment and quality upgrading projects, the GB VI standard upgrading is completed successfully. We moderately increased the export of oil products to keep a relatively high utilisation rate. Optimisation of resources allocation were carried out to reduce crude oil cost. In 2018, the Company processed 244 million tonnes of crude oil, up by 2.3% and produced 155 million tonnes of refined oil products, up by 2.7%, with gasoline up by 7.2% and kerosene up by 7.6% year on year.

In 2018, the operating revenues of this segment was RMB 1,263.4 billion, representing an increase of 24.9% over 2017. This was mainly attributed to the increase in products prices, as well as the Company's efforts in expanding the refinery throughput and increasing the sales volumes. Operating profit of the segment totaled RMB 54.8 billion.

Refining: Summary of Operations

Note: Includes 100% of the production of domestic joint ventures.

Marketing and Distribution

In 2018, confronted with fierce market competition, the Company aimed to achieve a balance between sales volume and profits. We brought our advantages of integrated business and distribution network into full play, and increased marketing efforts, thus, achieved sustained growth in both total domestic sales volume and retail scale. We adopted a flexible and targeted marketing strategy and upgraded our distribution network to further strengthen our existing advantages. We proactively promoted vehicle natural gas business and accelerated the construction and operation of CNG stations. Total sales volume of refined oil products for the year was 198 million tonnes, of which domestic sales volume accounted for 180 million tonnes. Meanwhile, we strengthened development and marketing of self-owned brands to speed up the growth of non-fuel business.

In 2018, the operating revenues of this segment was RMB 1,446.6 billion, representing an increase of 18.2% over 2017. Operating profit of this segment was RMB 23.5 billion.

Marketing and Distribution: Summary of Operations

Chemicals

In 2018, the Company adhered to the development philosophy of "basic plus high-end" to enhance effective supply. We persistently fine-tuned chemical feedstock mix to lower cost. We optimised products slate and increased high-end products output. The ratio of new and specialty products in synthetic resin reached 64.3%, the ratio of high-value-added products in synthetic rubber amounted to 26.3%, and our differential ratio of synthetic fibre reached 90.4%. By optimising utilisation rate and production plan based on market demand, we improved the operation of chemical units. To reinforce the capacity structural adjustment, we actively promoted several key projects. Annual ethylene production was 11.51 million tonnes. The Company also intensified its efforts to enhance the efficiency of the integration among production, marketing, R&D, and application as well as promoted targeted marketing and servicing to further expand our business, with total chemical sales volume increased by 10.3% to 86.6 million tonnes, hitting a record high.

In 2018, the operating revenue of the chemicals segment was RMB 546.7 billion, representing an increase of 24.9% as compared with that of 2017, This was mainly due to increase in sales volume and price of chemical products as a result of the Company's effort in actively expanding sales volume and market share, optimising product mix. In 2018, the segment seized the opportunities of high chemical margin, continuously optimised the structures of feedstock, product and facilities, strengthened the coordination among research, development, production and marketing, intensified allocation of resources, improved targeted marketing strategy, and achieved remarkable profits with increased sales volume of petrochemicals. In 2018, the operating profit of this segment was RMB 27.0 billion.

Note: Includes 100% of the production of domestic joint ventures.

Research and Development

In 2018, with the emphasis on reinforcing innovation-driven strategy, the Company accomplished notable results in R&D, deepened reform of R&D mechanism and pushed ahead with efforts in key and frontier technologies. In upstream segment, further advancement in evaluation technology of buried hill bedrock and deep carbonate reservoir and fracturing technology of deep shale gas field brought the breakthroughs in the exploration of Guaizihu Depression in Yin'e Basin and new series of strata in Maokou Formation in Yuanba area as well as the discovery of Weirong deep shale gas field. The pilot test of 185℃ high temperature measurement while drilling was successfully conducted in the ultra-deep well in Shunbei. In refining, we realised the industrialization of technologies including new sulfuric acid alkylation and hydro-isomerisation dewaxing for producing high grade base oil. In chemicals, the industrial demonstration unit of HPPO achieved stable operation and new products like PE film turned into commercial production. In addition, SOR, the framework type code of a novel structured zeolite synthesized by us, has been approved by the Structure Commission of International Zeolite Association, making us the first Chinese company to achieve a breakthrough in this area. In 2018, the Company had 6,074 patent applications at home and abroad, among which 4,434 were granted. The Company also won one second prize of National Technology Invention and three second prizes of National Sci-tech Progress, four silver and four excellent prizes of National Patent Awards.

Health, Safety, Security and Environment

In 2018, the Company constantly promoted the HSSE management. We implemented the concept of "Comprehensive Health" by integrating the management of occupational, physical and mental health of our employees. The Company took stringent measures to control risks and supervise the safety and operations of contractors. We also strengthened safety measures at all levels, removing potential hazards and enhancing our emergency response capability, all achieved sound and reliable production and operation. Public security management capability was strengthened with improvement in risk evaluation, monitoring and early warning and emergency response mechanism. The green and low-carbon growth strategy was further carried out by promoting clean energy and green development, such as steadily pushing forward our Green Enterprise Campaign and Efficiency Doubling Plan. We accomplished all emission reduction targets by pursuing clean production and preventing pollutions.

Capital Expenditures

In 2018, focusing on quality and profitability of investment, the Company continuously optimised its capital projects, with total capital expenditures of RMB 118 billion. Capital expenditure for the exploration and production segment was RMB 42.2 billion, mainly for Fuling and Weirong shale gas development projects, Hangjinqi natural gas development project, Shengli and Northwest crude oil development projects, phase I of Xinjiang gas pipeline, phase I of Erdos-Anping-Cangzhou gas pipeline, Wen 23 and Jintan gas storages, as well as overseas projects. Capital expenditure for the refining segment was RMB 27.9 billion, mainly for Zhongke Refining and Petrochemical project, Zhenhai, Tianjin, Maoming and Luoyang refineries, the gasoline and diesel GB VI quality upgrading projects and the construction of Rizhao-Puyang-Luoyang crude pipeline. Capital expenditure for the marketing and distribution segment was RMB 21.4 billion, mainly for construction of oil products depots, pipelines, service stations, non-fuel business and the renovation of underground oil tanks to remove potential safety hazards. Capital expenditure for the chemicals segment was RMB 19.6 billion, mainly for ethylene projects in Zhongke, Zhenhai and Gulei, Phase II of Hainan high-efficiency and environmentally-friendly aromatics project, Sinopec-SABIC Polycarbonate project and Zhongan coal chemical project. Capital expenditure for corporate and others was RMB 6.9 billion, mainly for setting up the joint-venture of Sinopec Capital Company with Sinopec Group, R&D facilities and information technology projects.

Business Prospects

Looking ahead to 2019, the international economy is expected to show a slower growth rate in the midst of a complex and uncertain global political and economic environment. Meanwhile, continued growth of China's economy will further drive up domestic demand for high-end refined oil products and petrochemicals. As the adjustment of China's energy mix deepens, demand for natural gas will continue to grow at a rapid pace. Considering uncertainties of supply capacity of major oil producing countries, global oil demand and geopolitical issues, etc., the international oil price is expected to fluctuate within a wide range.

Operations In 2019, adhering to the general principle of seeking progress while maintaining stability, the new development philosophy and the operating guidelines of "specialised development, market-based operation, international-isation and overall coordination". The following activities will be prioritized during the year.

Exploration and Production, by fully implementing the action plan of redoubling efforts in oil and gas exploration and production, we will advance high-efficiency exploration, continuously increase proved reserves and expand resource base. In crude oil development, more efforts will be made in promoting the capacity building of the Tahe Oilfield, making technological breakthrough for undeveloped oil-bearing reservoirs, improving refined reservoir characterization of mature fields in order to increase reserve development rate and recovery rate. In natural gas development, we will accelerate the capacity construction of key projects, optimise the system of natural gas production, supply, storage and marketing as well as the market layout so as to foster coordinated development of the whole business value chain. In 2019, we plan to produce 288 million barrels (40.48 million tonnes) of crude oil, among which overseas production will be 39 million barrels (5.41 million tonnes), and 1,019.1 billion cubic feet (28.9 billion cubic meter) of natural gas.

Refining, with integrated planning, we will optimise crude oil allocation, reinforce inventory management, and push forward the high-efficiency operation of the refining value chain. Maintenance will be arranged according to market changes so as to achieve maximum overall profit. We will further optimise product mix by lowering diesel-to-gasoline ratio and increasing the production of gasoline, jet fuel and light chemical feedstock.The quality upgrading plan for new spec marine fuel oil will be implemented to raise capacity utilisation ratio. Marketing mechanisms will be improved to push up the total trading volume of other refined oil products. In 2019, we plan to process 246 million tonnes of crude oil and produce 157 million tonnes of refined oil products.

Marketing and Distribution, insisting the marketing strategy of balancing profits and sales volume, we will continue to optimise resources allocation, expand market, and increase operation profit. We will carry out targeted and differential marketing with customers at its core so as to constantly improve service quality. The marketing and distribution network will be further improved to amplify the existing advantages. We will accelerate the construction and operation of natural gas stations and expand natural gas market for automobiles. Substantial progress will be made in hydrogen refueling stations and charging and battery swap stations. We will explore the new business mode of "Internet + service stations + convenience stores + comprehensive services" to advance the development and marketing of self-owned brands and to advance the growth of nonfuel business. In 2019, we plan to sell 182 million tonnes of refined oil products in the domestic market.

Chemicals, we will further adjust feedstock mix, product slate and facilities structure to constantly strengthen competitiveness. The continuous feedstock mix optimisation will diversify feedstock procurement channels and reduce costs. More efforts will be made in adjusting product slate and coordinating production, marketing, research and application to raise the proportion of high-end products. We will enhance the dynamic optimisation of facilities and product chain, and improve the utilisation and production scheduling based on market demand. We will strengthen market analysis to actively expand market, thus increasing market shares. Meanwhile, advantages cultivation and production capacity building will be accelerated to produce high-end products and create more value. In 2019, we plan to produce 12.12 million tonnes of ethylene.

Research and Development, we will continue to fully implement the innovation-driven development strategy, deepen the reform of scientific and technological systems, accelerate key technological breakthroughs, push ahead with frontier research on leading technologies, and step up the commercial application of technological achievement so as to strive for sustainable development in an all-round way. With the emphasis on constantly advancing oil and gas exploration and production technologies, we will focus on achieving breakthroughs in oil and gas exploration and production and resource evaluation technologies. In refining, more efforts will be made in making progress in refined oil product quality upgrading technologies, enhancing the technology development of self-owned refined oil product, and reinforcing the research on refinery total process optimisation technology. In chemicals, we will continue to improve the technological system for chemical products and strengthen development of high-value-added new materials. Technological breakthrough in safety and environmental protection will be stepped up. At the same time, prospective and basic research will be carried out on such leading and new areas including new energy, new materials, artificial intelligence and low-carbon so as to boost innovation.

Capital Expenditures, in 2019, we will further focus on investment quality and profitability through constantly optimizing capital projects. Capital expenditures for the year are budgeted at RMB 136.3 billion. Of which RMB 59.6 billion will be invested in exploration and production with focuses on the production capacity building of Shengli Oilfield, Northwest Oilfield, Leikou Slope in western Sichuan, Fuling Shale Gas Filed and Weirong Shale Gas Field, and the construction of natural gas pipelines and storage facilities as well as overseas oil and gas projects. The capital expenditure for refining will amount to RMB 27.9 billion which will be spent on the construction of Zhongke and Zhenhai Projects, and the refining structural adjustment projects of Tianjin, Maoming, Luoyang, Wuhan, Beihai and Yangzi. RMB 21.8 billion are budgeted for marketing and distribution with emphases on the construction of depots and storage facilities for refined oil products, pipelines and service stations, non-fuel business development, as well as renovation of underground oil storage tanks. The share for chemicals will be RMB 23.3 billion which will be used on Zhongke, Zhenhai, Gulei, Hainan and Wuhan, coal chemical projects of Bijie and Zhongan, and comprehensive resource utilisation and structural adjustment projects of Yangzi and SSTPC. The capital expenditure for corporate and others will reach RMB 3.7 billion, mainly for R&D facilities and information technology projects.

Appendix: Key financial data and indicators

FINANCIAL DATA AND INDICATORS PREPARED IN ACCORDANCE WITH ASBE

Principal accounting data

Principal financial indicators

FINANCIAL DATA AND INDICATORS PREPARED IN ACCORDANCE WITH IFRS

Principal accounting data

Principal financial indicators

The following table sets forth the operating revenues, operating expenses and operating profit / (loss) by each segment before elimination of the inter-segment transactions for the periods indicated, and the percentage changes between 2018 and 2017.

About Sinopec Corp.
Sinopec Corp. is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration and production, pipeline transportation and sale of petroleum and natural gas; the sale, storage and transportation of petroleum products, petrochemical products, coal chemical products, synthetic fibre, fertiliser and other chemical products; the import and export, including an import and export agency business, of petroleum, natural gas, petroleum products, petrochemical and chemical products, and other commodities and technologies; and research, development and application of technologies and information.

Sinopec sets 'fueling beautiful life' as its corporate mission, puts 'people, responsibility, integrity, precision, innovation and win-win' as its corporate core values, pursues strategies of value-orientation, innovation-driven development, integrated resource allocation, open cooperation, and green and low-carbon growth, and strives to achieve its corporate vision of building a world leading energy and chemical company.

Disclaimer
This press release includes "forward-looking statements". All statements, other than statements of historical facts that address activities, events or developments that Sinopec Corp. expects or anticipates will or may occur in the future (including but not limited to projections, targets, reserve volume, other estimates and business plans) are forward-looking statements. Sinopec Corp.'s actual results or developments may differ materially from those indicated by these forward-looking statements as a result of various factors and uncertainties, including but not limited to the price fluctuation, possible changes in actual demand, foreign exchange rate, results of oil exploration, estimates of oil and gas reserves, market shares, competition, environmental risks, possible changes to laws, finance and regulations, conditions of the global economy and financial markets, political risks, possible delay of projects, government approval of projects, cost estimates and other factors beyond Sinopec Corp.'s control. In addition, Sinopec Corp. makes the forward-looking statements referred to herein as of today and undertakes no obligation to update these statements.

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SOURCE China Petroleum & Chemical Corporation

BEIJING, Aug. 26, 2018 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec" or the "Company")(HKEX: 386; SSE: 600028; NYSE: SNP) today announced its interim results for the six months ended 30 June 2018.

Financial Highlights:

• In accordance with the International Financial Reporting Standards (IFRS), the Company's operating profit reached RMB 61.6 billion, increased by 56.6% year on year. Profit attributable to equity shareholders of the Company was RMB 42.4 billion, surged by 51.8% year on year. Basic earnings per share were RMB 0.350 (1H2017: RMB 0.231).
• In accordance with China Accounting Standards for Business Enterprises ("ASBE"), the Company's operating income reached RMB 1,300 billion. Operating profit was RMB 67.9 billion, surged by 51.3% year on year. Net profit attributable to the equity shareholders of the Company was RMB 41.6 billion, up by 53.6% year on year. Basic earnings per share were RMB 0.344 (1H2017: RMB 0.224).
• In accordance with IFRS, the Company's liability-to-asset ratio was 47.1%, reflecting a solid financial position. The Company's cash and cash equivalents (including time deposits) was RMB 205.2 billion, maintaining a healthy cash flow level.
• The Board of Directors declared an interim dividend of RMB 0.16 per share, up by 60.0% year on year.

Business Highlights:

In the first half of 2018, global economy recorded slow recovery, while China economy maintained a stable performance and secured progress in its economic development with gross domestic product (GDP) grew by 6.8%. While the domestic demand for oil products maintained steady growth, the market witnessed strong competition because of abundant supply. According to the statistics of NDRC, domestic consumption of refined oil products increased by 5.7% compared with the first half of 2017, among which gasoline consumption increased by 4.6%, consumption growth for kerosene and diesel was 10.9% and 5.6%, respectively. Domestic demand for natural gas recorded higher growth rate. Domestic consumption of major chemicals maintained significant growth with consumption of ethylene continued to report robust growth, and gross margin for chemical products remained at a high level.

• Exploration and Production: the Company promoted efficient exploration and effective production to increase proved reserves, reduced costs and expenses and achieved superior results in its upstream business. In exploration, the Company's continuing efforts in exploration paid off with major discoveries in a number of regions. In development, the Company adopted a profit oriented approach, in resumption of crude oil production. The Company also accelerated natural gas development by enhancing production-supply-storage-marketing system building to realise synergy along the entire value chain. In the first half of 2018, this segment recorded an Earnings Before Interest and Tax ("EBIT") of RMB 677 million.
• Refining: the Company maintained high operational utilisation rates of refining facilities. Refined oil products mix has been optimized to address market demand changes, more high value-added products were produced. The Company actively promoted refined oil products quality upgrading and optimised crude oil sourcing to lower feedstock cost. The advantage of centralised marketing was given full play. In the first half of 2018, this segment recorded an EBIT of RMB 39.4 billion, surged by 32.3% year on year.
• Marketing and Distribution: the Company took full advantages of its integrated distribution network to actively respond to competitive market conditions, and achieved good operational results. The Company intensified its efforts to explore more markets, expanded retail scale, and achieved sustained growth in total domestic sales volume. The domestic sales volume of refined oil was 88.45 million tonnes, up by 1.4% year on year. In the first half of 2018, the operating revenues and profit of non-fuel business were up 15.8% and 32.0%, respectively. This segment recorded an EBIT of RMB 18.3 billion, surged by 1.6% year on year.
• Chemicals: adhering to the "basic and high-end" development concept to adjust our feedstock structure and lower cost. The Company optimised product mix by enhancing the dynamic optimisation of facilities and product chains to provide more products needed by the market. The Company strengthened the integration among production, marketing, R&D, and application, and intensified efforts on R&D, production and sales of high value-added products. In the first half of 2018, this segment recorded an EBIT of RMB 18.9 billion, up by 14.5% year on year.

Mr. Dai Houliang, Chairman of Sinopec, said, "During the first half of 2018, we carried out businesses in a practical manner and fully realised the strengths of our integrated value chain. We secured stable and higher-quality growth of the Company along with improved performance. Looking into the second half of 2018, we expect China's economy to maintain steady growth and the demand for refined oil products and petrochemicals to increase steadily with more robust demand for high-end products. Along with the adjustments of China's energy structure, demand for natural gas will maintain robust growth. The Company will continue to focus on growth pattern upgrading, insist on specialized development, market-oriented operation, optimised global presence and integrated planning to enhance efficiency. This will strengthen our core competence and extending our value chain to middle-end and high-end, aiming to deliver better operating results and give back to our country, shareholders, employees, customers and the society."

Business Review

Exploration and Production

In the first half of 2018, capturing the recovery of crude oil price, the Company promoted efficient exploration and effective production to increase proved reserves, reduced costs and expenses and achieved good results. Our continuing efforts in exploration paid off with new oil and gas discoveries in Sichuan Basin, Tarim Basin, and Yin'e Basin. In development, we adopted a profit-oriented approach in resumption of crude oil production.) We also accelerated natural gas development by enhancing production-supply-storage-marketing system building to realise synergy along the entire value chain. Production in the first half of 2018 was 224.59 million barrels of oil equivalent, of which domestic crude production was 123.68 million barrels, overseas crude production was 19.95 million barrels, and total gas production was 476.2 billion cubic feet, increased by 5.3% compared to the same period of last year.

In the first half of 2018, operating revenues of the segment were RMB 87.9 billion, representing an increase of 18.6% year on year. This was mainly the increase of crude oil and natural gas prices as well as expansion of scale of natural gas and LNG business over the same period of 2017. In the first half of 2018, the oil and gas lifting cost was RMB 768 per tonne, representing an increase of 0.1% year on year. In the first half of 2018, the operating loss of the segment was RMB 0.4 billion, representing a decrease of RMB 17.9 billion compared with the same period of last year. This was mainly because the segment seised the opportunity of crude oil price recovery to promote efficient exploration and effective production and reduce costs and expenses and achieved good results.

Refining

In the first half of 2018, with the market-oriented approach, we optimised product mix to produce more gasoline and jet fuel, and the diesel-to-gasoline ratio further decreased. We actively promoted the GB VI refined oil products quality upgrading. Export of refined oil products was increased to help maintain high utilisation of refining facilities. Crude oil sourcing and allocation optimisation continued to lower our feedstock cost. We comprehensively optimised our production plans to ensure safe and reliable operations. The advantage of centralised marketing was given full play, and profitability of LPG, asphalt, and sulphur maintained at a high level. In the first half of 2018, we processed 121 million tonnes of crude oil, and produced 76.37 million tonnes of refined oil products, with production of gasoline and kerosene up by 5.7% and 9.4% respectively from levels in the first half of 2017.

In the first half of 2018, operating revenues of the segment were RMB 593.3 billion, representing an increase of 21.5% year on year. This was mainly attributable to increased prices of refined oil products, and the high utilisation rate maintained by the Company by proactively confronting with the over-supplied market.

In the first half of 2018, the refining margin was RMB 544.1 per tonne, up by RMB 70.4 per tonne, representing an increase of 14.9% year on year, which was mainly because the Segment put great efforts to reduce crude oil purchasing cost and enhanced product mix by optimising operation schedule according to market demand. The Segment constantly optimised product mix, increased export of refined oil products, optimised crude oil sourcing to lower feedstock cost and achieved good result. In the first half of 2018, the segment realised an operating profit of RMB 38.9 billion, up by RMB 9.5 billion, representing an increase of 32.5% year on year.

Marketing and Distribution

In the first half of 2018, confronted with fierce competition, the Company brought our advantages in distribution network into full play, and achieved good operational results. We coordinated internal and external resources, intensified efforts to explore more markets, expanded retail scale, and achieved sustained growth in total domestic sales volume. We proactively promoted precision marketing and differentiated marketing, and improved our marketing network to reinforce existing advantages. The total sales volume of refined oil products in the first half of 2018 was 96.48 million tonnes, of which domestic sales accounted for 88.45 million tonnes, up by 1.4% year on year. We strengthened development of key convenience store goods and proprietary brand to promote a rapid growth of non-fuel business.

In the first half of 2018, the operating revenues of the segment were RMB 668.3 billion, increased by 10.3% year on year. This was mainly due to the increasing refined oil products prices and gasoline sales volume. In the first half of 2018, the segment brought our advantages in integrated business and distribution network into full play, enhanced efforts to optimise internal and external resources, actively responded to market rebalancing, expanded markets, balanced profits and volume and achieved good result. In the first half of 2018, the segment's operating profit was RMB 17.2 billion, up by RMB 0.6 billion, representing an increase of 3.7% year on year.

Chemicals

In the first half of 2018, we constantly fine-tuned chemical feedstock mix to further lower costs, optimised product mix by enhancing the dynamic optimisation of facilities and product chains to provide more products needed by the market. We strengthened the integration among production, marketing, R&D, and application, and intensified efforts on R&D, production and sales of high value-added products, with the ratio of specialty products of synthetic resin reached 64.0% and our differential ratio of synthetic fibre reached 90.3%. Ethylene production for the first half of 2018 was 5.786 million tonnes, up by 3.2% year on year. We coordinated internal and external resources, implemented precision marketing and further expanded the market, with total chemical sales volume increased by 14.1% from the corresponding period in 2017 to 42.56 million tonnes.

In the first half of 2018, operating revenues of the chemicals segment were RMB 256.3 billion, representing an increase of 23.0% year on year, which was mainly due to increased petrochemical products sales volume and prices year on year as the Company seised market opportunities to expand market, promote sales and optimise structure. In the first half of 2018, the segment seized the opportunity of good margin, continued the 'basic and high-end' chemical business development concept, strengthened the integration among production, sales, R&D and application, further promoted optimisation of feedstock, product and facilities to lower feedstock cost, increase high value added products' proportion and achieved good result. The segment's operating profit in the first half of 2018 was RMB 15.8 billion, up by RMB 3.6 billion, representing an increase of 29.7% year on year.

Safety Management and Environmental Protection

The Company prioritised safe production and intensified safety supervision. In the first half of this year, we promote the construction of tiered risk control and operation hazard identification, prevention and rectification system. We advanced safety control of contractors and on-site operation, enhanced process safety of chemicals business, security and staff healthy management, and further consolidated the foundation of safe production at operational level. Above all, we achieved safe production and operations.

The Company actively implemented its green and low-carbon strategy and launched "Green Enterprise Campaign". We effectively carried out pollution prevention and control and constantly pushed forward energy efficiency improvement. We also accelerated carbon asset management and made great progress in energy and environment work.

Capital Expenditures

Focusing on quality and return on investment, the Company continuously optimised its investment projects. In the first half of 2018, total capital expenditures were RMB 23.687 billion. Capital expenditures for the exploration and production segment were RMB 10.762 billion, mainly for oil and gas capacity building, Wen 23 Gas Storage Project, Erdos-Anping-Cangzhou Gas Pipeline Project, the first phase of Xinjiang Coal Gas Pipeline Project as well as overseas projects. Capital expenditures for the refining segment were RMB 4.61 billion, mainly for the Zhongke integrated refining and chemical project, product mix optimisation of Zhenhai, Maoming and Tianjin, and GB VI gasoline and diesel quality upgrading projects. Capital expenditures for the marketing and distribution segment were RMB 5.373 billion, mainly for constructing refined oil products depots, pipelines and service stations and revamping of underground oil tanks, as well as other safety and environmental protection hazard removal projects. Capital expenditures for the chemicals segment were RMB 2.635 billion, mainly for integrated refining and chemical projects of Zhongke and ulei, high-efficiency and environmental friendly aromatics project in Hainan and Zhong'an United Coal Chemical project. Capital expenditures for corporate and others were RMB 307 million, mainly for R&D facilities and information technology application projects.

Business Prospects

Looking into the second half of 2018, we expect China's economy to maintain steady growth and the demand for refined oil products and petrochemicals to increase steadily with more robust demand for high-end products. Along with the adjustments of China's energy structure, demand for natural gas will maintain robust growth. For the second half of 2018, the uncertainty of international crude oil prices will increase due to trade frictions and geopolitical tensions.

Confronted with the present situation, the Company will integrate reform, management, innovation and development, to fully improve operational performances, expand markets, reduce costs, prevent risks and realise structural adjustments. Our focuses are on the following aspects:

For Exploration and Production, we will continue to advance high-efficiency exploration, profitable production and cost reduction. In crude oil development, we will accelerate profitable development of new oilfields and resumed production of suspended wells, deepen the structural adjustments of mature fields, and increase yields of profitable crude oil. In natural gas development, we will advance key projects for capacity construction, enhance the efficiency and quality of developed gas fields, as well as promote synergy of production, supply, storage and marketing to push forward the development of natural gas. In the second half of 2018, we plan to produce 146 million barrels of crude oil, of which domestic production will account for 125 million barrels and overseas production will account for 21 million barrels. We plan to produce 497.8 billion cubic feet of natural gas during the period.

For Refining, with efficiency-oriented approach, we will optimise our production plans based on market demand to consolidate our competitive advantages in refining business. We will continue to adjust our product mix by further lowering the diesel-to-gasoline ratio and increasing the production of gasoline, jet fuel and light chemical feedstock. We will complete GB VI refined oil products upgrading project as scheduled. We will fully optimise operations and ensure safe and stable production, and we plan to process 121 million tonnes of crude oil in the second half of the year.

For Marketing and Distribution, we will intensify our marketing strategy of balancing profit and volume by optimising resources allocation and operational efficiency. We will make efforts to expand retail scale through implementing precision marketing as well as differentiated marketing. We will further improve our marketing network to reinforce existing advantages and enhance the ability of exporting refined oil products. We will push forward the construction and operation of natural gas stations and expand natural gas market for automobiles. We will take the advantage of "Internet +" marketing strategy and accelerate the development and marketing of proprietary brand and products to advance the growth of non-fuel business. In the second half, we plan to sell 90.50 million tonnes of refined oil products in the domestic market in the second half of 2018.

For Chemicals, we will focus on the "basic and high-end" development concept to adjust our feedstock structure and lower cost. We will fine-tune our product slate, improve the coordination among mechanism combining production, marketing, research and application, advance new product development, promotion and application, and deliver more high-end products. We will put more emphasis on the dynamic optimisation of facilities and product chains and improving the utilisation and production scheduling based on market demands. Meanwhile, we will promote the precision marketing and services, improve customer services and provide total solutions and value-added services. We plan to produce 5.734 million tonnes of ethylene in the second half of 2018.

In the second half of the year, the Company will continue to focus on growth pattern upgrading, insist on specialized development, market-oriented operation, optimised global presence and integrated planning to enhance efficiency and deliver superior operating results.

The following table sets forth the operating revenues, operating expenses and operating profit/(loss) by each segment before elimination of the inter-segment transactions for the periods indicated, and the percentage changes between the first half of 2018 and the first half of 2017.

About Sinopec Corp.

Sinopec Corp. is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration and production, pipeline transportation and sale of petroleum and natural gas; the sale, storage and transportation of petroleum products, petrochemical products, coal chemical products, synthetic fibre and other chemical products; the import and export, including an import and export agency business, of petroleum, natural gas, petroleum products, petrochemical and chemical products, and other commodities and technologies; and research, development and application of technologies and information.

Sinopec Corp. sets 'fueling beautiful life' as its corporate mission, puts 'people, responsibility, integrity, precision, innovation and win-win' as its corporate core values, pursues strategies of value-orientation, innovation-driven development, integrated resource allocation, open cooperation, and green and low-carbon growth, and strives to achieve its corporate vision of building a world leading energy and chemical company.

Disclaimer

This press release includes "forward-looking statements". All statements, other than statements of historical facts that address activities, events or developments that Sinopec Corp. expects or anticipates will or may occur in the future (including but not limited to projections, targets, reserve volume, other estimates and business plans) are forward-looking statements. Sinopec Corp.'s actual results or developments may differ materially from those indicated by these forward-looking statements as a result of various factors and uncertainties, including but not limited to the price fluctuation, possible changes in actual demand, foreign exchange rate, results of oil exploration, estimates of oil and gas reserves, market shares, competition, environmental risks, possible changes to laws, finance and regulations, conditions of the global economy and financial markets, political risks, possible delay of projects, government approval of projects, cost estimates and other factors beyond Sinopec Corp.'s control. In addition, Sinopec Corp. makes the forward-looking statements referred to herein as of today and undertakes no obligation to update these statements.

View original content:http://www.prnewswire.com/news-releases/sinopecs-profit-for-1h2018-up-52-with-dividend-payout-surges-60-300702434.html

SOURCE China Petroleum & Chemical Corporation

BEIJING, April 26, 2018 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec Corp." or the "Company")(HKEX: 00386; SSE: 600028; NYSE: SNP) today announced its unaudited results for the three months ended 31 March 2018.

Financial Highlights：

• In accordance with the International Financial Reporting Standards (IFRS), the Company's operating profit was RMB 29.218 billion, up 14.9% year-on-year. Net profit attributable to owners of the Company was RMB 19.306 billion, increased by 12.3% year-on-year. Basic earnings per share ("EPS") were RMB 0.159, increased by 12.0% year-on-year.
• In accordance with China Accounting Standards for Business Enterprises ("ASBE"), the Company's operating income was RMB 621.251 billion, increased by 6.7% year-on-year. Net profit attributable to equity shareholders of the Company was RMB 18.770 billion, increased by 12.8% year-on-year. Basic earnings per share ("EPS") were RMB 0.155, increased by 13.1% year-on-year.
• The Company's financial position continued to improve during the first quarter. In accordance with IFRS, cash and cash equivalents at the end of the first quarter was RMB 129.788 billion. Liabilities-to-assets ratio at the end of the first quarter was 44.3%.

Business Review：

In the first quarter of 2018, the global economy recovered gradually, and Chinese economy maintained a momentum of steady and sound growth with gross domestic product (GDP) up by 6.8%. International crude oil price fluctuated at a narrow range and increased slightly. The Company pursued supply-side structural reform as main task, focused on improving the quality and efficiency of our operations, upheld the policy of Reform, Management, Innovation and Development, and strengthened efforts on cost reduction, market expansion, structural adjustment, reform promotion, management reinforcement, which helped deliver solid operating results.

Exploration and Production:

The Company constantly strengthened measures on high-efficiency exploration activities and adopted profit-oriented approaches on development. In exploration, we made new progress in northeast Sichuan area in Sichuan Basin and in Shunbei area in Xinjiang Tarim Basin, strengthened efforts in E&P in deep, normal pressure and new strata of shale gas formations, and found new discoveries in Weirong shale gas field. In oil and gas development, we accelerated crude oil reserve evaluation, promoted capacity building in new areas of crude oil and natural gas; constantly advanced progressive exploration and reservoir appraisal of natural gas. In the first quarter, the oil and gas production of the Company was 111.33 million barrels of oil equivalent, among which domestic crude oil increased by 1.3% while natural gas increased by 0.6%, compared with the same period of last year. Exploration and Production Segment had an operating loss of RMB 0.318 billion, realising a significant reduction in loss by RMB 5.446 billion compared with the same period of last year.

Refining:

The Company comprehensively optimised the operation of production plans. We proactively adjusted product structure, improved production volume of gasoline, jet-fuel and other high value-added products, the ratio of diesel to gasoline decreased to 1.06. At the same time, we actively implemented refined oil product quality upgrading to ensure the supply of high quality refined oil products, optimised crude oil procurement and resource distribution to realise cost control. In the first quarter, refinery throughput grew by 2.1% and refined oil products production grew by 2.6%, among which gasoline up by 4.7%, kerosene up by 8.6% and diesel down by 1.7% over the same period of last year. Refining Segment realised an operating profit of RMB 19.007 billion.

Marketing and Distribution:

Faced with intensified competition, the Company took an active part in coping with marketing challenges. We gave full play of our advantages in integrated operation and marketing network by coordinating internal and external resources, optimising resource distribution, and improving capability of service, and realised increase in both total domestic sales and retail volume of refined oil products. We optimised the distribution network, improved environment protection measures for our service stations, and revamped the storage and transportation facilities of refined oil products to improve the marketing network. We further promoted integration of fuel business and non-fuel business, optimised the system for self-owned brand products and accelerated the construction of integrated service stations. Our non-fuel business kept increasing rapidly. In the first quarter, total sales volume of refined oil products was 47.21 million tonnes, among which domestic sales volume recorded 43.35 million tonnes with an increase of 3.4% over the same period of last year. The operating revenues of non-fuel business reached RMB 8.726 billion, up by 21.8% compared with the same period of last year. The Marketing and Distribution Segment realised an operating profit of RMB 8.925 billion.

Chemicals:

The Company further optimised product slate, produced customer-oriented and high value-added products. We optimised feedstock mix to reduce cost. We intensified efforts on R&D, production and promotion of high-value-added new products, with the differential ratio of synthetic fiber reaching 89.8% and the ratio of new synthetic resin products and performance compound reaching 63.0%. We put more effort into marketing development and promoted fine chemical products marketing and targeted marketing service. In the first quarter, ethylene production reached 2.995 million tonnes, up by 1.8% and chemical sales volume was 20.458 million tonnes, up by 10.0% over the same period of last year. The Chemicals Segment realised an operating profit of RMB 8.452 billion.

Capital Expenditure:

In the first quarter, the total capital expenditure was RMB 6.414 billion. Capital expenditures for Exploration and Production Segment were RMB 1.597 billion, mainly for capacity construction of shale gas, Hangjinqi natural gas and Shunbei crude oil, as well as for construction of Wen 23 Gas Storage Project, phaseⅡpressure boosting project of Sichuan-to-East China Pipeline, phaseⅠproject of Xinqi Pipeline and overseas oil and gas projects. Capital expenditures for Refining Segment were RMB 1.269 billion, mainly for Zhongke integrated refining and chemical project, structure adjustment in Zhenhai, Maoming and Tianjin subsidiaries, and GB VI standard gasoline and diesel quality upgrading. Capital expenditures for Marketing and Distribution Segment were RMB 2.273 billion, mainly for revamping service stations, construction for pipelines from Zhanjiang to Beihai and Jingmen to Xiangyang etc., as well as building depots and storage and rectifying safety and environmental hazards. Capital expenditures for Chemicals Segment were RMB 1.158 billion, mainly for Zhongke integrated refining and chemical project, the high-efficiency and environmental- friendly aromatics project (phaseⅡ) in Hainan refinery, and other resources integrated utilisation projects as well as product structure adjustment projects. Capital expenditures for Corporate and Others were RMB 117 million, mainly for R&D facilities and information technology application projects.

Appendix

Principal financial data and indicators

Principal financial data and indicators prepared in accordance with China Accounting Standards for Business Enterprises (ASBE)

Units: RMB million

2.1.2 Principal financial data and indicators prepared in accordance with International Financial Reporting Standards (IFRS)

Units: RMB million

About Sinopec Corp.

Sinopec Corp. is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration and production, pipeline transportation and sale of petroleum and natural gas; the sale, storage and transportation of petroleum products, petrochemical products, coal chemical products, synthetic fibre and other chemical products; the import and export, including an import and export agency business, of petroleum, natural gas, petroleum products, petrochemical and chemical products, and other commodities and technologies; and research, development and application of technologies and information.

Sinopec Corp. sets 'fueling beautiful life' as its corporate mission, puts 'people, responsibility, integrity, precision, innovation and win-win' as its corporate core values, pursues strategies of value-orientation, innovation-driven development, integrated resource allocation, open cooperation, and green and low-carbon growth, and strives to achieve its corporate vision of building a world leading energy and chemical company.

Disclaimer

This press release includes "forward-looking statements". All statements, other than statements of historical facts that address activities, events or developments that Sinopec Corp. expects or anticipates will or may occur in the future (including but not limited to projections, targets, reserve volume, other estimates and business plans) are forward-looking statements. Sinopec Corp.'s actual results or developments may differ materially from those indicated by these forward-looking statements as a result of various factors and uncertainties, including but not limited to the price fluctuation, possible changes in actual demand, foreign exchange rate, results of oil exploration, estimates of oil and gas reserves, market shares, competition, environmental risks, possible changes to laws, finance and regulations, conditions of the global economy and financial markets, political risks, possible delay of projects, government approval of projects, cost estimates and other factors beyond Sinopec Corp.'s control. In addition, Sinopec Corp. makes the forward-looking statements referred to herein as of today and undertakes no obligation to update these statements.

Investor Inquiries：                              Media Inquiries：
Beijing
Tel：(86 10) 5996 0028                          Tel：(86 10) 5996 0028
Fax：(86 10) 5996 0386                          Fax：(8610) 5996 0386
Email：ir@sinopec.com                           Email：ir@sinopec.com

Hong Kong
Tel：(852) 2824 2638                            Tel：(852) 2522 1838
Fax：(852) 2824 3669                            Fax：(852) 2521 9955
Email：ir@sinopechk.com                      Email：sinopec@prchina.com.hk

View original content:http://www.prnewswire.com/news-releases/sinopec-corp-posts-net-profit-of-rmb-19-3-billion-for-q1-2018--300637225.html

SOURCE China Petroleum & Chemical Corporation

BEIJING, March 25, 2018 /PRNewswire/ -- China Petroleum & Chemical Corporation ("Sinopec Corp." or the "Company") (HKEX: 386; SSE: 600028; NYSE: SNP) today announced its annual results for the twelve months ended 31 December 2017.

Financial Highlights

• In accordance with IFRS, the Company's turnover and other operating revenues reached RMB 2.36 trillion in 2017, up 22.2% from the previous year. Profit attributable to equity shareholders of the Company was RMB 51.24 billion, up 9.8% year-on-year. Basic earnings per share were RMB 0.423.
• In accordance with ASBE, the Company's operating profit was RMB 87.0 billion, representing a 12.4% increase as compared with 2016. Profit attributable to shareholders of the Company was RMB 51.1 billion, up 10.1% year-on-year. Basic earnings per share were RMB 0.422.
• In accordance with IFRS, the Company's liability-to-asset ratio as at the end of 2017 was 46.54%, which represented an increase of 2.01 percentage points compared with the end of the previous year. Meanwhile, the Company maintained a sound financial position. Cash and cash equivalents amounted to RMB113.2 billion as at 31 December 2017, maintaining at a healthy level.
• The Company focused on quality and efficiency of its development, optimised product and feedstock mix, increased high-value-added products production based on the customer demand. Refining and chemicals segments results both achieved record high. Operating profit of the refining segment totaled RMB 65.0 billion, an increase of 15.5% year-on-year. Operating profit of the chemicals segment was RMB 27.0 billion, up 30.8% year-on-year.
• Taking into account the Company's profitability, cash position, shareholder return and future business development, the Board proposed a final dividend of RMB 0.40 per share, which combined with the interim dividend of RMB 0.10 per share, brought the full-year dividend to RMB 0.50 per share, up 100.8% from the previous year. Dividend payout ratio reached 118%. Total cash dividend to be paid for the full year was RMB 60.5 billion, highest since its listing.
• In accordance with IFRS, the Company's total assets increased by 9.9% and shareholders' equity increased by 22.4% compared with the levels in 2014. During the three years of the sixth session of the Board, the Company's turnover and total assets have grown steadily. The Company's businesses have expanded rapidly, and overall performance has continued to improve. In addition, the Company delivered good returns to shareholders, with total dividends declared for the three-year period amounting to RMB 108.8 billion.

Business Highlights

In 2017, global economy recovered gradually, while China maintained stable and favourable economic growth with gross domestic product (GDP) up by 6.9%. As the Company made major decisions, the Board of Directors focused on steady and firm improvement, continued to focus on supply-side structural reform and stepped up efforts to enhance the Company's efficiency, profitability and corporate governance with an emphasis on delivering returns to shareholders.

• Exploration and Production segment: implemented a low-cost strategy to address the challenge of low oil prices, focused on high-efficiency exploration and development, and enlarged proved reserves to lay a stronger foundation for sustainable development. The Company also developed its natural gas business as a new driver for profit growth. The Company built up the production capacity of the Fuling shale gas field to 10 billion cubic meters per year.
• Refining segment: optimised product mix and the production volume of high-value-added products have been further improved. The Company actively promoted refined oil products quality upgrading and optimised its production plans along with market changes. The advantages of centralised marketing took full play and the Company developed this business into its profit growth drivers
• Marketing and Distribution segment: innovated operational models, optimized layout of service stations and brought he Company's advantages in integrated business and distribution network into full play, achieving sustained growth in both total sales volume and retail scale. In addition, the Company proactively promoted and cultivated vehicle natural gas business. Non-fuel business maintained its rapid growth.
• Chemicals segment: adopted a customer-focused approach and enhanced the adjustments in our product and feedstock mix. The Company intensified its efforts to enhance research and development, production, marketing and sales of new high-value-added products and implemented precision marketing. Both the sales volume and profitability of the chemicals segment reached record highs.

Mr. Dai Houliang, Vice Chairman & President of Sinopec Corp. said, "In 2017, The Company actively addressed market changes through a focus on the improvement of assets quality and profitability, as well as operation upgrades. We pressed ahead with measures for specialised business development, market-oriented operation and overall coordination. With a focused supply-side structural reform, we coordinated all aspects of our work and delivered solid operating results. In 2018, the global economy will continue to recover. While China's economic development model will shift from high-speed growth to high- quality development, domestic demand for oil and chemical products will remain robust. In view of the new requirements in the new era, the Company will adhere to an underlying principle of progressing at a steady pace and under a new development model that makes quality and efficiency our top priorities. We will continue to implement our set strategies and enhance our corporate governance with China's characteristics. We will also strive diligently to improve our production and operational standards, reinforce our reform, innovation and management to enable sustainable development."

Business Review

Exploration and Production

In 2017, faced with low oil prices, we constantly strengthened measures to increase proved reserves and rein in development costs, which helped achieving better results. We gave priority to high-efficiency exploration activities and made new discoveries in the Xinjiang Tahe Basin and the Sichuan Basin. The Company's newly added proved reserve reached 462.73 million barrels of oil equivalent, with crude oil reserve replacement ratio reaching 116.0%. In crude oil development, we constantly adopted a profit-oriented approach, deepened structural adjustment, focused on cost control, reduced natural decline rate and ensured steady production. In natural gas development, we actively pushed forward capacity building in Hangjinqi of Nei Mongol and Dongpo of west Sichuan, and completed 10 bcm(billion cubic meter) per year shale gas capacity building in Fuling. The Company's production of oil and gas was 448.79 million barrels of oil equivalent, with domestic crude production down by 3.2% from the previous year and natural gas production up by 19.1%.

In 2017, the operating revenues of this segment were RMB 157.5 billion, representing an increase of 35.9% over 2016. This was mainly attributed to the rise of realised price of crude oil and natural gas as well as expansion of LNG business. The operating loss of the exploration and production segment were RMB 45.9 billion, representing an expanded loss by RMB 9.3 billion as compared with 2016. By deducting the non-operating income from capital injection of Sichuan-to-East China Pipeline Co. in 2016, the Company realized a significant reduction in loss by RMB 11.3 billion in 2017.

In 2017, the oil and gas lifting cost was RMB 788.3 per tonne, representing a year on year increase of 0.3%.

Refining

In 2017, with the market-oriented approach, we optimised product mix to produce more gasoline and jet fuel, and the production volume of high-value-added products have been further improved, with the diesel-to-gasoline ratio further declined to 1.17. The Company actively promoted refined oil products quality upgrading, the GB V standard diesel quality upgrading completed, and advanced the refined oil products quality upgrading of GB VI standard. We adapted to market changes by took full advantages of our integrated business, and moderately increased export volume of refined oil products. We comprehensively optimised our production plans to ensure safe and reliable operations. The advantages of centralised marketing took full play, and profitability of LPG, asphalt and other products were further improved. In 2017, the Company processed 239 million tonnes of crude, up by 1.3% from the previous year, and produced 151 million tonnes of refined oil products, with gasoline up by 1.2% and kerosene up by 5.5% from the previous year.

In 2017, the operating revenues of this segment were RMB 1011.9 billion, representing an increase of 18.2% over 2016. This was mainly attributed to the increase in products prices. In 2017, the operating profit of the segment totaled RMB 65.0 billion, representing an increase of RMB 8.7 billion or 15.5% as compared with 2016.

In 2017, refining gross margin was RMB 510.7 per tonne, representing an increase of RMB 38.8 per tonne compared with 2016. This is mainly due to the increased proportion of high value added products, the promotion of quality upgrading of refined oil products, enlarged total refinery throughput by increasing the export volume, and further improved margins for LPG, asphalt and other refined oil products by our centralized marketing advantages brought fully into play. In 2017, the unit refining cash operating cost was RMB 175.2 per tonne, an increase of RMB 9.5 per tonne over 2016, mainly because of increased operating expenses resulting from newly operated facilities related to quality upgrading of refined oil products as well as safety enhancement and environment protection.

Marketing and Distribution

In 2017, confronted with stronger competition, the Company brought our advantages in integrated business and distribution network into full play, optimised internal and external resources, intensified market efforts and achieved sustained growth in both total sales volume and retail scale. We innovated operational models and optimised layout of service stations, and expedited revamping of storage and transportation facilities of refined oil products to further improve our distribution network. In addition, we proactively promote and cultivate vehicle natural gas business. In 2017, the total sales volume of oil products was 199 million tonnes, of which domestic sales accounted for 178 million tonnes, up by 2.9% year on year. We strengthened self-owned brand development and marketing, and non-fuel business maintained its rapid growth with increased scale and profits.

In 2017, the operating revenues of this segment were RMB 1,224.2 billion, representing an increase of 16.3% over 2016. In 2017, the operating profit of this segment was RMB 31.6 billion, representing a decrease of 1.8% compared with 2016. Among which, the operating revenues of non- fuel business was RMB 27.6 billion, representing an increase of RMB 6.2 billion compared with 2016; the profit of non-fuel business was RMB 2.2 billion, representing an increase of RMB 0.7 billion compared with 2016.

Chemicals

In 2017, the Company continued the "basic and high-end" chemical business development concept to promote effective supply. We fine-tuned chemical feedstock mix to lower costs, optimised product mix and increased high-value-added products production based on the customer demand. We optimised production and operation based on market conditions and intensified dynamic modelling and monitoring of profit to increase profitability. Ethylene output was 11.61 million tonnes, up by 5.0% from the previous year. The Company intensified its efforts to enhance research and development, production, marketing and sales of new high-value-added products. Our differential ratio of synthetic fibre reached 89.0% and the specialty and new products as a percentage of synthetic resin reached 63%. By fully exerting our network advantage, implementing precision marketing and further expanding the market, our full- year chemical sales volume increased by 12.2% from the previous year to 78.5 million tonnes, marking a historic record.

In 2017, the operating revenues of the chemicals segment were RMB 437.7 billion, representing an increase of 30.6% as compared with that of 2016, This was mainly due to increase in sales volume and price of chemical products as compared with 2016. In 2017, the segment seized the opportunities of the improving market conditions, coordinated production with sales, intensified structural adjustment, increased the production of synthetic resin, rubber and some organic products which were more profitable, positively expanded the market, strictly controlled costs and expenses, thus, resulting in remarkable profits. In 2017, the operating profit of this segment was RMB 27.0 billion, representing an increase of RMB 6.4 billion or 30.8% as compared with 2016.